While running a large group of small landlords in Philly, i have visibility into the full realm of challenges that new investors face - and some are quite overwhelming and totally unexpected because they jumped in without fully understanding what they jumped into. 

How much have you over-improved the property?

Other group homes for abused, veterans, and mental challenged usually have less opposition. 

Unfortunately many of the improvement costs do not deviate greatly when you’re renovating a lower cost property  in a particular market compared to a more expensive property  in the very same market which makes it difficult to absorb the improvement costs in some areas.

The short answer is I look for 9% min and try to press it to 11% with those strategies along with rental increases once improvements are made and the tenants know you actually care about the property.

I'm excited for the challenge!

Challenges?

My agent said it wasn't worth challenging because Nationwide is leaving the state.Our insur. agency sent a new proposal from Bass insur.

I'm not sure if folks are phishing for something or what but I appreciate you taking time to challenge the initial poster's post.Steve

And therefore competition among tenants can create significant challenges, like...Businesses may struggle to establish a unique presence and loyal customer base, and a lack of profitability due to nearby competition will likely lead to higher tenant turnover.