A 1031 also adds complexity and timing pressure.Watch Out For:Opportunity Cost: Renovations tie up cash that could go toward other investments or reserves.MTR/STR Management: These models require more time and effort than LTR, even without a property manager.Market Risks: WA properties may appreciate slower than expected, and higher costs could reduce your margins.If cash flow is your priority, option 1 (renovate and STR/MTR) likely offers the highest upside.

A few weeks ago I wrote a summary overview to our investors in both funds to prepare them for probably lower returns in the short run from potential higher defaults.

Not crazy, but if that mortgage becomes $650K, $700K, $800K, you begin to feel a little apprehensive and need more interest in return for incrementally higher risk. 

However, if you have a solid mulit family unit, you can have higher overall rent due to your unit count.

With inventory slightly decreasing in November, do you anticipate increased competition heading into the new year, or are higher mortgage rates keeping activity balanced?

The more liberal the location, the higher the risk.  

I was willing to pay a higher upfront cost and sacrifice a greater monthly cash flow to achieve these top two priorities.We landed on a SFR in Harvest, AL.

Small improvements or updates can justify slightly higher rents too.

The rental market here seems to be cooling and it's hard to pencil deals even if I rent by the room to achieve higher than average rents.

This higher rental demand drives up rental rates.