Prelim #'s I'm running show cap near 8% - however I'm fudging high on water (irrigation) if we tied into the city water - I'd like to have a well drilled and put in a warm season grass so the mowing season is shorter and it requires less water.Putting in vacancy of 5% though what I've noticed is the new developments stay full - also figuring Cap Ex as well, which honestly if we build right and dont own more than 10 years or so the only thing we should look at having to replace is carpet or a water heater which is minimal unless a hail storm or tornado goes through.  

Shorter is better but not necessary to pay a lot unless you're going to make a money making site, which this is not, it's informational.

I would figure out a shorter commute for work.

I run shorter depreciation schedules for non-integral assets like sheds, fences, appliances, window treatments, etc.     

Utilities can be high since little to no insulation, usually old windows, older heating  and even older wiring to deal with.They usually attract a lesser quality shorter term tenant. 

The typical restaurant business fails in the first year (MBA marketing studies) and even the biggies close specific locations due to - - wait for it - - CASH FLOW.That said, offer the shorter term lease and let them prove themselves.

Though that does seem to be the question; do the potential higher returns in a shorter time frame make up for the tax consequences.  

What you're probably hearing about I was just discussing in another thread.You use a non-amortized credit line such as a HELOC to pay off an amortized loan in a shorter time.Because amortized loans are "front-loaded" - initial payments are mostly interest - the balance comes down very slowly.Non-amortized loans pay down much more quickly.

If the leases are shorter and expiring could you structure a lower base rent attracting tenants with profit share in your favor that would cover your bills and allow you to capitalize on the type of risk you are investing.

A shorter term means you get cashed out quicker.