The main reason is other buyers who are better able to pin down operating costs will either outbid you because they have their costs right, or you'll outbid them because you have your costs wrong. 

A lot of Californians moved to AZ and TX, but as significant as the numbers are it's only a drop out of a very large bucket.

We didn't buy much from the MLS and if we did, it was either a "handyman special" or it had been on the market 180+ days with a motivated seller willing to take less than market value.This will be the "new normal" going forward and a lot of newer investors will drop out of the acquisition market and just hold what they have.

Everything I've read shows PA peaked in 2022 and has dropped 5-6% since then. 

You can hear a pin drop when i drop that one..

But then I told myself, if Bitcoin price really drop significantly to $1000 a piece, then the time to drop to zero won’t be far away...Like Enron many years ago, when the stock price dropped to $1.00, it then filed bankruptcy and dropped to zero. 

I’ve noticed quite a few price drops in SFH in these areas in the past few weeks due to shifting market conditions.

Rates may drop, but they also may not.

It should go away.If it's only them smoking and a personal issue, I would reconsider dropping this if they are otherwise good tenants.

That said, most of our DSCR options have had rates drop over the past few days, so right now is probably a good time to move forward (at an 80% or 75% LTV) as it is very possible to get you rates in the 8s and even low 7s right now at those LTVs, if your credit and DSCR ratio are good.