There are two types of return from a rental propertyCash Flow & Appreciation.I normally also aim for a minimum of 8% return between Cash-Flow and Appreciation.Appreication, nationally, is around 2% to 3% annually.Therefore, your goal is to get the cash-flow to be about 5% to 6%.The issue is interest rates being very high, you would therefore, need to buy at a pricepoint where the numbers still make sense.You can always put down more of a downpayment to cash flow, but that will impact your cash on cash return calculations.Best of luck!

The issue is cost.

This could be a huge opportunity for investors who can find cheap conversions (think: a SF with an existing in law apartment).

The issue I had was that most lenders required a certain number of completed flips done under a LLC.

Be prepared to face fluctuations in the market, unexpected repairs, and tenant issues.

It results in tenant friendly laws.  

Why is this an issue?

It is hard to respond to this without fully understanding the issue and missing pertinent information such as what market etc. 

If cash flow improves, it might make sense to hold onto the property while expanding your portfolio with new acquisitions.Reinvestment OptionsIf you sell or pull equity, focus on markets and property types that align with your cash flow goals:Out-of-State Markets: Research markets with strong rental demand, favorable landlord laws, and higher cash-on-cash returns.

Then there were some issues with the inspection report that ruined 3 contracts prior to me getting involved.