@Lalainya RawlingsPerfect illustration of why you should get tax advice from accountants like @Nicholas Aiola and not from realtors.

40%  Who knows what it will be, but the point I want to illustrate is that because 401k and traditional IRA accounts are taxed on the backend, the security of the $1 in the account is really determined by the same entity that can decide to pause rents for a year.

@Owen Thornton to keep it really general, cap rate is simply an illustration of the expected "rate of return" that investors are currently expecting to receive, if they pay cash for a property.

Following up on my above post, I’ve attached two pictures illustrating the discount and rent absorption.

Here is a 1% rule pro forma on a 100k home to illustrate how terribly a property would perform under these circumstances:https://cl.ly/4ad3e13% rate of return!

I actually use that illustration in classes I teach for realtors to encourage them to vet vet vet QIs. 

@Lauren Cooper I will share with you MY personal goal and current strategy as an illustration which is not intended to tell you what you should do but in the spirit of trying to be helpful.

The second income part isnt so tough as I work as an illustrator, so my time is flexible, and residuals from books can help keep me funded, even when I am not working.

A good example to illustrate to folks that both the UPB and BPO levels matter in pricing talks and taking one or the other on their own sort of distorts the real market tolerance for risk in the asset class.  

The photos are nice and big and illustrate a broad range of price points, styles and finishes in the local market.