We can all agree rising operating costs dictate revenue needs to offset expenses.

I keep hearing that costs of labor and supplies are rising (when aren't they?)

We took the highest month of "normal" winter usage we had records on -- people in the house, heat running at a reasonable temperature, washer/dryer running, etc.  

Most people here are more conservative investors and would advise you just sell, but if you're set that the price will continue to rise, just sell a few days before closing.

Rents will rise much at a much faster rate, so the challenge of finding cash flow (enabling more investors to become "capable") will gradually recede as SFR cap rates gradually expand - it will be a process, not an event - over the next few years.

The tenant frequently informs me the interior temperature only reaches 68 degrees.

He believes that area where he will be buying the new homes is going to appreciate and attract more MTRenters, but now, the big difference is that he would now have 3 properties that can go up (or potentially down) in value, go up (or down) in rent, and three times as many vacancies to fill.My back of the napkin assessment is that for only a drop in $200 a month in cash flow, he would control a lot more assets with growth potential and as rents rise over the coming years, the combined rents will increase to a total more than the single rent.HOWEVER.

If you’re using leverage, be extra cautious with your underwriting to ensure the deal still works at today’s rates.Economic Uncertainty: Inflation, potential recessions, or shifts in demand could affect rents, vacancy rates, and property values in some markets.Increased Operating Costs: Rising insurance premiums, property taxes, and maintenance costs can cut into profit margins, particularly for buy-and-hold investments.Regulatory Risks: Some areas are increasing restrictions on landlords, particularly short-term rentals.

Have been tracking the news on insurance which surprisingly to me- is not expected to rise in Colorado, post the LA fires.

Moving inland, Dover presents a more affordable option with rising demand for multifamily units and a steady rental market, though its short-term rental potential is less robust than coastal towns.