If it's 8% for this property class then you may have a hard time going in at your cap if they know what they are doing.As @David Wright mentioned, I would go with a longer amortization period like 25-30yrs which will increase your cashflow as well as looking for a better rate than 6.5% which will also increase monthly cashflow.I agree with what @David Wright & @William C. mentioned in that you can get your units up to market rent quicker than $50/yr but of course this would require either the current residents to accept the full rental increase to market with their new lease or getting new residents to replace the ones who don't accept the increase.

@Linda D. - Generally, I wholeheartedly agree, but there are two things (three really) that are unique to Baltimore (at least I think they are unique to Baltimore)...1) Baltimore is very aggressive when it comes to historic preservation. 

Amanda HanBrandon HallTax Reform Update – Brandon Hall and Amanda Han Linda Weygant GuidesUltimate Beginners Guide Forum StickiesBP Calculators or spreadsheets uploaded by membersMy Favorite Books I have to say all of the BP books…right?

@Linda Osborn Thanks for the detailed response!

@Phil Falcini,Talk to @Linda Weygant, she is based in Denver and is an expert in taxes when it comes to REI.

@David Wright JrIf you have deals, go to some local real estate investor meet ups.

Thank you @Linda Hastings! 

Adam Wright is the host.  

@Desmond Wright,The market has already started shifting!

Good question, @Linda Hastings.