They are often based on a combination of unleveraged internal rates of return and discounts to replacement cost due to the scarcity of debt.Where cap rates are used, they have seen significant movement off the 2021 lows, with 5-star properties seeing yields expand by 175-200 basis points.

Often times taking a lot more crap from a tenant than is really necessary.  

We have 3 rentals, and Turbotax says we made about $27k off the 3 combined last year, so I ended up having to pay the IRS $8k.

@Maryam Mostafa 12 cap is high risk, high effort or some combination of the two.

But the next day, I had a second counter offer accepted for a not as dated 1970s triplex that I wasn’t expecting so I’m now feeling a combination of fear and excitement that I’m sure a lot of you felt on a first deal. 

Until then the tax advantages combined with the control of your own real assets can’t be beat. 

It would be easier (i.e combining capital) and nice to have a common goal but I’m not sure if it’s advisable if my spouse’s mindset isn’t as investment oriented

capital gain and passive activity is very different you can't offset each other.see to make this PAL stuff to be make sense you need to combine it with 2 years tax-free first 500k primary buy/sell, 1031 , syndication and development/flipping activity.

I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.Happy to share my experiences.

maybe you're losing a few hundred in cash every month, but i'd be willing to bet the appreciation, debt paydown, and tax benefits combined are seriously outweighing that. you could look at this like putting the negative cashflow every month into an invisible savings account for the future, like a retirement account. this obviously only works if you can comfortably lose that cash every month. you could also consider not renewing the lease and doing STR or MTR in that property?