Thus, diminishing margins. 

That way of think has its law of diminishing returns now that I'm being accustomed to never meeting unrealistic goals.

Feedback on this post has shown my numbers aren't wrong...times have just changed & rates where they are have diminished the BRRR method as it was used the past few years.

But as one gets worse (CA) and one gets better (Great Lakes) that gap will diminish. 

The law of diminishing returns still applies. 

And, yes, if you're LTV is hurt your exit (i.e. ability to sell the property) options will diminish.  

I think Seattle's own analysis on these changes said that they expected a few hundred to a thousand additional units per year to be developed as a result of these changes,   so if seattle has about ~150K single family homes,  thats not a dramatic rate of change.Also,   Seattle's anti-landlord renter protection ordinances are going to diminish interest in this,  especially if our more aggressively / unapologetically socialist council members get their way and achieve some sort of rent control.   

We're all grown ups here and know the money is coming from the buyer.In the age of the internet - the value of the real estate agent/broker has diminished tremendously.

But it is doubtful that their paperwork would diminish and they would rent month to month.

You are living in a fantasy land if you think tech could go away or be reduced/ diminished and everything is just hunky-dory.