I don't see this mentioned more often but look at property tax rates, how often property values are reassessed, and if there's a cap with each increase.

But a lot of my clients that can get these better deals are now refinancing and keeping these and stacking inventory and when market conditions are such they can exit they will start selling and it makes sense hold them over 12 months and now you have a performing asset and you have cap gains instead of ordinary income.  

NOI / cap rate = sales price, and sales price x cap rate = NOI.

Most deals purchased in 2022 were at absurdly low cap rates and highly inflated values. 

You also may be required to have certain drainage features built into the land, building setbacks from the curb, number of parking spaces, number of handi-cap parking spaces, space for trash, et cetera.

Update from one of our bankers.  60,000 population  town, multi locations state wide, $20mm Fed lending cap.1. 

Finally, I am unconvinced that the remaining repairs will produce a return greater than their costs; I suspect the remaining repairs will cost an OOS investor more than they increase the value of the property.I suggest she sell capping her losses.  

It obviously caps the return on investment for rental property, and when you cap the costs than can be recovered, you're going to get less of it - in this case, rental property. * It's mind-boggling that after what we've been through in the housing market since 2008, that California would consider a bill that sends the message, "We don't want to develop, rehabilitate, or improve our housing stock

Good evening @Ling Chen,Out of state investing gives you higher cap rates and better COC returns than NYC.

Also the DSCR ratio at 7% cap rate is barely above 1.