Even really skilled operators are left with no back up plan because they can't pivot to LTR in that market, can´t fetch the price they paid because the STR has lost some steam and was bought using nightly rate numbers etc.

There are also bonus rates for larger investments.

.• Primary residence: A 2-bed, 2.5-bath townhouse purchased in 2020 with a 2.75% interest rate.

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

Note: I'll caveat: I believe that other factors should be considered when analyzing the market as well (i.e. economic growth/stability, low crime rate, affordability, etc.)

Quote from @Devin James: Quote from @Andrew Syrios: “If you want to increase your success rate, double your failure rate.”- Former IBM CEO Thomas Watson This is my first time hearing this..

Rising interest rates at the time created downward pressure on our ARV.

I've always found inventory rates (and how they've moved over time ie previous 1-2 years) to be the starting point for where a market's health is at.

If one or more units are vacant, the remaining units often don’t provide enough cash flow to cover expenses, making it harder to meet operating costs.Maintenance costs: A fourplex comes with four times the appliances, plumbing, HVAC systems, and other components to maintain, leading to significantly higher repair and maintenance expenses than single-family homes.If you want to see the detailed calculation, read this BP blog - More Units Doesn’t Mean More Money—Why a Single-Family Home Can Beat a Fourplex.Resale value: Multi-family properties have a limited buyer pool—mainly investors—who base their offers on CAP rates.

Most folks are charging 10% of the rental rate for monthly PM fees. 1 months rent for a leasing fee and couple hundred for a lease renewal.