What is the prevailing cap rate in the market for this asset class and make sure that the reversion/exit cap rate is half a percent at least increase bc you're assuming that you're selling it in a junker market.Loan Terms & Exit Strategy:Verify the loan terms (e.g., 3+1+1 extension structure).Confirm if the deal involves bridge loans or fixed-rate, long-term agency financing.Assess if the extension options are realistic based on the current and projected market conditions.

This approach allows you to manage the property closely, benefit from homeowner loan terms, and potentially increase its value with improvements before renting it out.As you transition the townhouse to a rental, ensure the rent covers all expenses and provides a profit.

Potential to increase rents over the long-term? 

The shorter the prepayment term has an impact on increasing the rate.4.

Also getting those top of market rents usually requires a relatively recently renovated property with a new tenant in place and having a PM who will make sure to put in the allowable requests for rent increases in a timely manner.

This move addresses the growing power needs of data centers, which are increasingly relying on alternative energy sources to reduce carbon emissions.

Rates have now decreased from averages in the mid-7's to now upper-5's, yet the market has not seen a "speed up" -- likely due to the seasonal swing, and the upcoming election. 2025 should see strong property value growth, with increased inventory, but also increased buyer activity with rates expected to continue downward. 

On average, homes in the area have seen an increase of 8.18%, significantly higher than the national average, which typically ranges between 2-3%. 

This is a key step if you move forward with a land contract.Closing ConsiderationsAvoiding a Formal Closing: Skipping a formal closing saves on costs but increases the risk.

Until builders can catch up and create millions of homes, I think we will continue to see huge increases in sales prices, however, the lack of sellers means numbers in terms of how many houses sold will continue to go down driving prices up even higher