Mortgage broker.I picked a 7 cap to intentionally DSCR-constrain the best options to 70% LTV - in place NOI and cap rate determines the down payment requirement, a property at a 6% capitalization rate would require an even larger down payment.

In Real estate, it's 90 percent predictable.In appreciation city:So you need to buy place where it appreciates a lot , DSCR > 1.0 + use 15YFRM is recommended or 30YFRMIn cash flow cityYou could buy anything with higher cash flow and use 30/40YFRM (don't use 15YFRM here)  This is my own calculation how much I make from 500k house in CA compare to $100k cashflow MF in Wisconsin:net cash flow + appreciation for CA: ($200*12)+($5000*12)= $62,000net cash flow + appreciation for WI: ($700*12)+($1666*12)= $28,400This is indirectly how the cap rate works, I don't count the equity building like you said because the LTV is predictable and would be the same regardless the location of property.This is why also when you have two set of very different problem, you arrive with two set of different solution.Do not use Cash flow strategy IN appreciation city.Do not use Apreciation strategy in Cash flow city.

I have dozens of investors still getting high cash flows and cap rates even in the current interest rate environment.

I realize the cap in Indiana is 2% on rental properties, but special assessments drive this number north. 

Depends on so many factors: - What it yields- What you're trying to achieve- What headache factors you're willing or not willing to have - What tax implications come from selling (and if you have to replace your debt in a 1031 exchange)With 1.7-1.9mil that would be a 6-10 unit out here in Reno, NV that with cash could produce probably a 6-7 cap with upsides in rents. 

IMO, direct REI is too much work to only earn the cap rate.

But what a lot of people don't know is that if you have owned your property for say 5-10 years - all that deferred appreciation your county tax appraiser has been tracking all those years - but not able to pass it along to you due to the caps on increases - goes out the window.  

I recently picked one up for a client on Cap Hill that will cash flow positive even with him living in one unit (rare, special circumstances on that one but even if you’re just offsetting some of your living expenses it will be so much better than renting).

You owe capital gains tax on your new property net selling price, minus your original property purchase price, minus the amount the new property cost more than the net sale proceeds of your original property, minus any cap ex that hasn’t been fully depreciated.

In the long run, you'll be further ahead, but in the short term you will be putting in a lot of money and not getting anything back.Giving them 1 year's notice that rents will increase and letting them know they can move out at anytime with 30 day's notice will give them time to find a new place.I'm also assuming you aren't in an area where there are caps on rent increases.