This included some landmark deals including Rockefeller Center’s $3.5B loan and Miami Beach’s Fontainebleau $1.2B refinancingAlternative lenders filling traditional banking gaps with short-term solutions which has already begun a cycle of consolidation that will likely continue and accelerate in 2025The Office Sector Divide:CBD property values are down 50.7% from 2021 peaksClass A office properties seem to be in their own vacuum of prosperity with trophy properties commanding premium rents ($100+ PSF nationally, up to $247 in top markets) with strong occupancyHybrid work continues impacting older building valuations which have not faired as well, but this may begin to rebalance as more companies are instituting mandates to return to physical officesChallenges & Opportunities:$1 trillion in loans maturing by 2026Interest rates up from 3.5% (2021) to 6.74% (2024)Experts such as AEW’s Michael Acton and Blackstone’s Nadeem Meghji see the best entry point in the last 15–20 years and we agreeMarket Outlook:Current market conditions present unique opportunities, with inflation-adjusted prices at historic lows and yields at decade highs.

What condition is the exterior (siding) in?

I don't really want to invest in a D-class area.Tangentially, what are some of your "it's time to sell this property" red lines when it comes to the changing economic conditions of an area? 

If you sell your full interest you may get push back but contracts in MN are assignable unless otherwise prohibited.

The best advice is don't buy in any area that prohibits STRs or makes operating them so onerous that you're unlikely to make any profit.

@Lisa Oliver I wouldn’t give keys to trades men under any condition.

Hello Kyle,When screening applications for the properties that I manage, I always look for:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)I have found this screening standard very helpful when finding tenants who pay on time and treat the property well!

For this deal to work under those conditions, the purchase price would need to be closer to $179k.With your original assumptions 249k, the deal is marginally acceptable but not great, given the negative cash flow in the early years.

small homes don't work. we build a stacked triplex much more affordably. density is key and vertical is the key. use that land cost and fixed costs more efficiently. everything we build for apartments is less than 700 square feet and only 2 beds and all 3 story walk ups and all triplexes. by building codes 4 family is commercial and also becomes cost prohibitive.

Other things to consider:HOA RESTRICTIONS: If your property is part of a homeowners’ association (HOA), check their rules, as they may prohibit or restrict ADUs even if city zoning allows them.