Whether or not the other benefits of new construction outweigh this diminishment of potential appreciation could be the topic of another post.Deeper dive and feedbackI’d be super interested to hear from folks on this topic.

I am worried not only about escalating costs but also about diminishing profit margins due to delays in obtaining permits.

Perhaps I missed the point, that the cost of scaling would simply make it a model with ever diminishing returns, with only so much deals you could close in each given locale.  

I realize averages can be skewed but my point is that when people are experiencing equity growth I believe it diminishes the opportunity for SUB2 deals (what's the point if you can sell out right?).

Or, if financially, you find a deal you can't refuse to buy, make sure there is a Plan B, if you need to increase or diminish the size of space your business utilizes.

What happened in CA right now would have larger impact nationwide even ten years from now.I've seen the impact of 2001 dotcom bust, now Powell had diminished CA job market lol.We would see how many migration out of CA this year.

You should keep something in your properties as a hedge, but at some point your equity has diminishing returns.

Overbuilding certain features can lead to diminishing returns, especially if they don’t resonate with local buyers.

But I know I made the right call when I sold some properties end of 2021/early 2022, and did not 1031ex, but rather paid taxes and eliminated debt on the properties I wanted to keep.I’m hoping to keep what I have for as long as a I can stand managing them (at least they are nice properties in prime locations…but as I get older my tolerance for hassles diminishes ;)  So I don’t fool myself for a second acknowledging that there are all kinds of external factors that may compel me to sell.

I think a bit of analysis paralysis is good for a new investor in this current market when looking at TK providers.When I first started REI in late 2013, I only worked with TK providers and bought as fast as I could because I knew the recession was coming to a close and the great deals were diminishing rapidly.NOw, we are in a completely different market, we have a different president....