With conventional mortgage rates hovering around 7% for 30 years… cash flow basically happens at 6.5% cap rate and above.

Our neighborhood is desirable due to somewhat of a location hack (we are 1 minute away from Swimming Pen Creek then on Fleming Island for you locals), so we expect to be able to sell in 2 years and cap a 200k payday tax free.

Normally cash-out refinances are capped at 75% and of course, they will need to cash flow positively with principle, interest, taxes, and insurance.

5% risk free return is hard to compete with, particularly when cost of debt is at or above cap rates in many classes of real estate.

When I say "quality" i mean the quality of the neighborhood, and not necessarily the property.For example I am looking at a property that is being short listed for 20k fully renovated (zillow estimate is 35k) but it's in a depressed area with a few rowhouses boarded up around it, but there is an existing tenant there and the rent, cap rate, and cash flow look excellent on paper.

the $700 probably does not even cover maintenance/cap ex on 2 units at smaller unit count pricing.  5% vacancy/no payment is $230/month.  

The taxes are annoying, but most area come with very little cap on value.

But given the high-interest rate and expanded cap rate environment, I feel like there may be some good opportunities for vulture GPs/Operators.

Exhaust fans aren't required by code here, and honestly it would be really hard to put one in that was the required height above the range due to the sloping ceilings.So, in short, I would really like to put an electric stove up there and have the gas line capped off before the new tenant moves in.

HOWEVER, there are certain areas that are dealing with different layers, like.. massive migration to the Southeast Region of the US, which means tourist areas near those areas (beaches and mountains) are still exploding and breaking records for STR market cap (money spent by guests on rentals).