Alternatively you can also use the Fannie Mae underwriting guidelines to determine the actual net income (75% of gross rents - PITI(M))The advantage for the seller here is, that he will receive (almost) the same income without any volatility.

Both are positioned to do very well over the short- and long-term, for whatever that means in our volatile market...One more thought: analysis paralysis is the enemy, far more so than choosing the "wrong market."

As long as we don't have a huge set back with Coronavirus or epic stock market volatility again it does seem like it should just be a matter of some time.

I understand historically low interest rates, but also see historically low returns and historically high volatility. 

From what I'm hearing, lending is still tight on the commercial side and given the volatility with COVID, they are requiring syndicators to have more capital reserves.

Also, cap rates are not just a location based metric, but also include the volatility of the particular market's economy, and the quality of the asset. 

They have a little higher gains (a lot more volatility) but a syndicator who is willing to put you in a deal with more than 10-20% of your net worth is asking for trouble.

Also they are bad assets long term, very high association fees with poor management, don't appreciate well or hold value, very volatile market, very difficult to exit (12mo+ of inventory).Only use is for someone who wants to have something on the strip if they come into town very often to visit and want to offset the cost.

We are at a point we aren't sure what to do with our savings and would like to start investing in real estate to avoid the stock market and the volatility. 

If you just buying a C class and making cosmetic improvements which has volatility of continuous maintenance, capex expenses and potential tenant turnover.. then those percentages will be maxed out every monthBut if you take a different approach of gutting a place and replace old and making new you will attract a better tenant and less maintenance capex issues..