But if borrowing costs remain high and interest rates don't fall as many people expect, cap rates will have to decompress further. 

I bought 6 unit property in Wildwood,NJ,in November 2024, doing rehab now,  should be done by May 2025I am planning to subdivide 6 unit building to 6 separate condos and sell fall 2026, , if there are any experts in 1031 that can help me?!

To your point, passive real estate investment returns tend to form a bell curve, with a few underperforming, a few overperforming, and most falling in the middle of the bell curve.

Slip and falls are a leading liability concern a property owner should be aware of and snow removal is not something to cheap out on. 

Quote from @Christopher Morris: Quote from @James Hamling: @Christopher Morris I get the sense that your falling into the all-too common fallacy of absolutes. 

The down fall is a Heloc can "Never" be used as an asset or for PITI reserves required when buying a new Primary or investment property.A heloc can also cause major issues with credit and one slight hiccup or missed payment the bank or lender who is holding the Heloc can close or reduce your line of credit.

I'm sure some local banks will do higher especially with a strong relationship but don't think I will fall into that category.

Once someone is in your home for 30+ days, they typically fall into the long term renter category and all the rights that come with it. 

Quote from @Chaliyah Penick: I have a relative that is up in age and no longer able to afford the mortgage and are falling behind. 

Each has their own tax implications.There are some alternative methods of calculating how much of the distribution and therefore the interest expense falls under this category, but the bottom line is that it is very important to keep track of.