Do you prioritize cash-on-cash return, equity buildup, cap rate, monthly cash flow, or something else entirely? 

With those kinds of rents ($5,800 between the 2), even with a 9% cap rate, in my opinion those properties should collectively appraise for nearly $500k.

However, they capped me at 10 rentals.

If I do, I need to sell it by July 2026 in order to not have cap gains.

Especially these last few years with interest rates being so low for so long, every decent asset class has seen cap rate compression for several years.

If you are considering long term holding always remember to include your reserves for cap ex, maintenance & vacancy. 

Yes, residential does give me a lower cap rate, but it's more stable. 

I'm sure you will need tools to find deals (eg price/sqft etc), estimate rents, calculate cash-on-cash returns, cap rate etc.

Should an investor use 50% of ARV as their purchase price cap?

When including maintenance/cap ex, vacancy, pm, misc he will have little, and possibly negative, cash flow.if he invested almost $250k to add less than $150k of value (assume some of the current value came from the home appreciation), there is no cash flow until the initial negative equity position is recovered.