I was chatting with some of my lending buddies at big banks and they are all backing away from the CRE space including office because operating costs are increasing more quickly than rents.

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

It costs $10 to register to attend the events, but your attendance comes with an all you can eat buffet at The Asian Star Buffet.

My cost wont necessarily be the same or comparable as I GC my own projects and have trade skills.

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

Strengthen Your ProposalDevelop a Business Plan: Include:Vision: Your goal of creating a micro-home community.Market Research: Show demand for affordable or small-footprint living in your area.Financial Projections: Break down costs, ARV, and anticipated ROI.Experience: Highlight your previous fix-and-flip and demonstrate your learning curve.Present a Solid Development Plan:What is the size and scope of the project?

@Tiffani HollisFor a long-term rental, I’d avoid used dishwashers entirely—repair costs and reliability issues often outweigh the savings.

But I would charge the extra 3% to cover my costs.

Purchasing a “distressed” property and “repositioning” it requires significant capital for improvements, build outs, holding costs, maintenance.In looking for that “needle in a haystack” slam dunk great deal you’re competing with very knowledgable, greatly experienced investors with the cash to make no contingency offers and close in a few days.  

I am in this camp myself, as I do this full time.I agree with your point about focusing on long-term sustainability rather than chasing maximum rental income at the cost of increased tenant turnover or property damage.