What there real true product is, that they are selling is HOPE.

Even more challenging is ignoring that inventory of 20,000 homes on the market and sourcing off-market deals.It's true that with a good deal, money will follow.

If you want to know your true return, you should also add in your annual appreciation(This is assuming the prior number is just cash-flow).Current rates are high right now at around 7%.For it to make sense refinancing, you would need to find an investment that generates a return atleast higher than that, which may be hard.

This especially true at high leverage (85% in your case). 

Landlords always think the worst (and it can be true), but sometimes people go to the hospital, die, or have things to deal with.What has your relationship been like to-date?

So, yes, each new offering is an opportunity to move to 506(c), but for these established groups with established networks that are limited by good deal flow versus capital availability there is no need to change the process and compliance requirements needed with a 506(c) offering, since the entirety of their marketing and raise will be limited to existing investors and/or referrals.Again, for OPs purpose, it doesn't make finding them easier, admittedly, but to imply that 506(c) equates to better operators is not true in my experience.

I don't doubt that it is true for some people, but I think sometimes people just repeat it because that's what's in their head, without actually tracking it.I think part of it is market dependent as well. 

Historically the slower appreciation is probably true, but the market has changed.  

Quote from @Mike Dymski: You have $100k in appreciation in two years, which dwarfs the increase in property taxes.Whether to hold or sell is based on future estimated IRR of what you own vs estimated IRR of other opportunitiesVery true I just got caught up in the increased property taxes and that was hard to get over sometimes.

I know it’s true.