However, the new and used car sales business is substantial and not decreasing because of depreciation.

. :)But, as to the initial question, then your statement that yield decreases is not correct as to a simple yield or return on the investment, the quicker funds are returned from a discount the higher the yield .

Also, if the house has a new roof, new water heater, and furnace, and/or newly painted exterior then you may be able to justify decreasing your budget for capital expenditures and repairs/maintenance.

If you can identify ways to increase income and/or decrease expenses, this is where true value can be accomplished in this space.

Opt for upfront PMI , this will eliminate the monthly PMI, which will decrease your DTI.

As things get more competitive I expect It to increase but I’m curious if anyone has been able to keep it stable or even decrease it?

When the sponsors sell or disposition the property after they have forced the value up by doing updates, increasing the income, decreasing the expenses, etc.; the big value comes.

Pinpointing newer buildings will definitely decrease your chances of major repairs, but checking in with the current owner and paying close attention to the inspection seems to be the best bet to make sure you know what you are buying.

Or you do a cash out refinance to purchase another property which will grow your portfolio but is going to decrease your cash flow as more leverage (borrowed money) means a highly debt servicing cost.

Don't want to get over leveraged, in case there's a correction and rental rates decrease and/or vacancies go up.