There's a high multifamily inventory in Essex, Passaic, and Hudson counties.

Hi, I would highly recommend reaching out to @Michael H.

To me this means a 2-3 bd single family home in a high B / A area and saving a big emergency fund.

Typically $2m+ homes don't cashflow due to high taxes, high insurance rates, and low rental demand. 

If you are too high, market rate customers will ignore you. 

The purchase price, construction/labor costs, and ARV are all higher here in California than most states so I already have a high tolerance for risk and have the necessary liquidity to scale. 

That’s why the rate is so high. 

If you believe the new assessment is too high, you can file an appeal.

Based on those numbers, yes CoC return is "accurate" but I wouldn't say it's "reasonable"...in fact, it seems VERY high.

Phase #1 - Recovery  - characterized by high vacancy rates and no new construction- rent, during this phase, is flat or declining- owners offer rent concessions to avoid their property occupancy rate from  decliningPhase #2 - Expansions- characterized by declining vacancy and the start of new construction- occupancy improves, concessions are not being offered, and rental rates being to growPhase #3 - Hyper Supply - characterized by new construction and vacancy rates beginning to rise - rental rates begin to grow at a slow rate- rent concession are being offerred due to the new construction in the area [in the hope of retaining current renters]Phase #4 - Recession - characterized by the completion of construction and a decline in occupancy rates - concessions are abundant to avoid high move-out rates Here are some foundational truths about optimizing your investments:#1 sow seeds of success in the down times - "The season of failure is the best time for sowing seeds of success."