If your holding period is 20+ years, the difference may be several roofs, HVAC, updates to keep them marketable and neighborhoods depreciating in value (or not appreciating as fast).I suggest you find the best market and the best units that meet the forecasted need in the community, but at the middle or upper end of that segment assuming better condition and less maintenance.Rules, such as the 2%, 50% are good for evaluations to estimate properties, but they may not ring true for a particular property, some will be better and some won't meet those guidlines yet they can out perfom over time due to location, building materials, socio-economic aspects of tenants and taxe assessments.

I think that it reaches two different segments of investors and our whole goal is to make this more accessible anyway.

I realize RE is market specific and even though nationally prices have not fallen close to enough to compensate for a doubling of the interest rate that there are markets and segment of markets that may offer opportunity.But on average, the stats show for finances properties there are less deals than a year ago (meaning payment has increased in inflation adjusted dollars).Financed equates to leverage which historically produces the best return.

Hello @Saad Hameed,Instead of choosing a state based on opinions, I suggest selecting a city based on your financial objectives.To permanently escape the daily grind of working for a living, you'll need a passive income that meets three requirements:Inflation compensation: Rental income increases at a faster rate than inflation, compensating for rising prices.Persistent income: Your income will last, ensuring that you and your spouse won't outlive it.Reliable income: Your income continues even during difficult economic times.Inflation compensation and income persistence depend on the city, while income reliability is based on both the location and the tenant segment.

Notably, loans supporting workforce housing are exempt from these caps this year, signaling an anticipated surge in lending within this segment compared to the limitations in 2023.

In reality :1. we know the future interest rate and forward curve trajectory2. we can predict cap rate3. we can also predict rent growth, Marcus and Milicha even has this data per city segment. 

A range of companies in different segments (cellular phones, investment banking, retail/credit card banking).

Once you identify such a segment, determine what and where they rent today and buy similar properties.

Or go bigger and get into the luxury segment where people are buying the experience, there is a certain attraction factor.

There are some owner-occupied segments with people who share motivating factors for selling their home.Seniors with Long-time Ownership: often ready to downsize or transition to assistance.Homeowners with Low Financial Stability Scores (FSS): Struggling financially and likely ready to cash in on their asset.Both these categories have additional advantages in that they probably don’t haven’t been updated and may have deferred maintenance.