We aim for a target cap rate, say 6%, aligning with our investment strategy.Here's an example: if a property yields $1.2 million in income and costs $10 million, resulting in a 6% cap rate.Then there's the adjusted going-in cap, factoring in potential changes in income or expenses.

HELOC rates are fixed only for a certain period of time and then adjust on a monthly basis.

Tony While this is a real estate forum, real estate does not outpace other investment accounts, they are almost identical and historically the difference is so slight it would not change your way of life.

Any adjustments to the plan?

The property is a 4bd 1 Bath SFH with 4 almost identical rooms located in the Summit - University neighborhood in St Paul.  

Tenants will adjust better to the small increases.

(option to go to 24, but I want the initial project to begin locally.)Location- OhioMarket type- Local, within 8 miles to meBuilds- Identical 2700sf, 4 bed, 3 bath , placing the same structure that meets the tenants criteria in 9 locations.Debt: Seeking a refinancing option  based on a 9% cap rateThe difference ( 450,000 x 9= 4,050,000    vs    NOI of $384,261 / 9% = 4,269,576 or $474k/property + tenant)with our continued rates of appreciation and a standardized tenant/lease structure in place, this should be a win for everyone.Who has a solution?

Stay dedicated and committed to your real estate investments, keeping your goals in mind and being open to learning and adjusting to market changes.Good luck!

In addition, many of those cheap OOS places have historical long term rent growth at or below the inflation rate meaning that cash flow is unlikely to increase significantly in inflation adjusted dollars.  

Verify everything independently or risk-adjust the purchase price (which may not result in acceptance).2) then I did tax returns for a season. 9 out of 10 people with rental properties had no records of their expenses and would just say, “put down $200 for that” etc.