Whether or not the other benefits of new construction outweigh this diminishment of potential appreciation could be the topic of another post.Deeper dive and feedbackI’d be super interested to hear from folks on this topic.

outweighs the aesthetic of a bunch of cargo containers.https://www.jwbrealestatecapital.com/shipping-container-apar...https://dtjax.com/poi/ashley-street-container-lofts/

Whenever to costs of a new mortgage are outweighed by a lower rate (assuming that is the only factor you’re considering) is a good basis. 

On an 8 plex, there isn't much meat on the bones for the amount of work needed for Management, but when you factor in an additional 24 units, that starts to benefit the PM, so there is more room to negotiate.Initially, the cost of PM outweighs your returns. 

The pros outweigh the cons.

I bought Class C in 2023 hoping it would at least cash flow a little - so far the repairs outweigh any cash flow.

However, as you mentioned, appreciation is tied to external factors, making it less predictable in some markets.Greater Toledo Market:When looking at the Toledo area, there are certain neighborhoods where appreciation potential may outweigh cash flow, but it requires a strategic approach.

Proximity to attractions, restaurants, and transportation can often outweigh a perfect rating.

@Carmen Assang It'll come down to whether the cost of an eviction (both lost rent + attorney fees) outweighs the cost of eating 1 month of rent.

However, if the benefits significantly outweigh the risks and you have a strong CPA to guide you, it might be worth pursuing.