May have to increase your budget to 550k range tho. 

The Birmingham market has been showing steady growth, with increasing demand for both single-family homes and multi-family properties.

.- Rebuilding Costs: Higher-value homes may have higher premiums due to more expensive repairs.What This Means for Homeowners- Fairer Premiums: Properties with lower risk may see lower premiums, while higher-risk properties may face increased costs.- Gradual Rate Increases: Increases are phased in over time for policyholders who see higher premiums, with annual caps on the rate hike.- More Predictable Rates: Rates better reflect the real risk rather than just being based on a flood zone map.Example Scenario (Simplified)- Old System: A house in a designated flood zone pays $1,000 annually, regardless of its elevation or distance from the water.- Risk Rating 2.0: That same house may now pay $1,200 if it's closer to the water and more vulnerable or $800 if it's higher up and better protected.Flood zones still matter under Risk Rating 2.0, but their role has changed. 

Personally, I’ve been exploring opportunities where growth patterns and infrastructure expansion hint at future value increases.

@Jake Faris Contributions for development and remodeling will be capitalized, increasing the property’s basis and reducing taxable gains upon sale, These costs are not immediately deductible.

You could have your insurance cancelled but more likely you're going to see a rate increase.

Your not correct under many different circumstances.First property tax is 1.1% (fairly safe) with 2% annual increase (prop 13).Next expenses include a lot more than property tax and interest. 

Of course, when the cap rate eventually increase, that would be a different story.For those of you who invested in previous funds, do you know what was the going in cap rate for the MHP in your fund?

So, what is happening today is not as important as what will happen in the foreseeable future.If rents are increasing faster than inflation (I use 5% per year as an average rate), then it may be worth holding the property, since your cash flow will increase as rents rise.However, in your post you stated, "Mortgage rates have kept increasing as well, that's why I put a range on negative cash flow."

So your net earnings ( increase in wealth) is $650.