They both play a crucial role in determining a property's value, but understanding the nuances between them is essential for making informed investment decisions.Think of a cap rate as a shortcut for property valuation.

However, it's crucial to differentiate between capital improvements, which can affect your tax situation and potential interest deductibility, and mere repairs or maintenance, which do not.Furthermore, the mortgage interest deduction is capped at interest on up to $750,000 of debt, a threshold that encompasses both your primary mortgage and any additional secured loans.

Understanding the local market there, like rental rates and property trends, is crucial but hard to do from far away.Finding a reliable property manager is vital for tasks like tenant screening and repairs.

Orange County?

There is no room for error in this process, so it is crucial to work closely with an exchange agent.

I live in Orange County, CA but I have extended family there and like the opportunities that exist in that area.

I currently serve some great STR markets like Perdido Key, Pensacola Beach and Navarre Beach and I'm in the process of getting my Alabama license so that I can work in Orange Beach and Gulf Shores as well. 

Understanding local regulations and zoning laws is crucial to avoid legal issues.

It means the market's got some strength behind it.Checking out a market's past performance is crucial too.

Also network with GC's and PM's, these are crucial for investors.