In Indiana, temperature fluctuations are absurd.

But I personally feel it's not a huge proportion of the cap rate - my guess would be that a much higher proportion of cap rates (a much bigger component of the overall cap rate) is due to the illiquidity of real estate.As far as the fluctuating nature of cap rates from year to year though, I do feel that's mainly due to market supply and demand, since the risk premium and illiquidity premium are basically baked in and don't change; it was just as inconvenient to lock your money up with a long term mortgage/property ten years ago, and just as much hassle to deal with tenants (directly or indirectly, via property management delegation) as it is today.There are lots of Wall Street inspired/funded studies that research these somewhat theoretical questions.

Market fluctuations, unexpected renovation costs, or delays in selling the property can impact your returns and strain the holding costs.When using a HELOC (even just for down payment and holding), you're essentially leveraging the equity in your home.

The taxable percentage changes annually as the loan balance decreases and the property value fluctuates.

STR can be harder to finance, and have more fluctuations.

@Chris Holt I take AIRDNA with a grain of salt because their number fluctuate with the seasons.

I don't think Bigger Pockets will allow me to post links, but the pros and cons summarize the article well.ProsIncrease potential ROI of retirement savings by investing in nearly any type of asset.Rental property can hedge against inflation and economic fluctuations with a diversified retirement portfolio.Profits generated from a rental property in an SDIRA allow for tax-free growth.Property can be bought and sold within an SDIRA without using a 1031 tax-deferred exchange.ConsUsing all of your retirement savings to purchase a rental property in an SDIRA can significantly reduce diversification and increase potential risk.Rental property held in an SDIRA cannot be for personal use or family use (like a vacation home), including distant relatives or service providers of the SDIRA.All expenses must be paid for with SDIRA funds, third-party contractors must make the repairs and manage the property, and funds deposited in an SDIRA beyond annual contribution limits will incur significant penalties.Tax benefits, such as depreciation and operating expenses to create a paper loss for tax purposes, cannot be claimed with rental property held in an SDIRA.I see that @Jeff Nash also referenced prohibited transactions in his reply, and that he's an accountant so he would probably have additional information to add if you wanted more details on what is and isn't allowed.

Additionally, understanding and navigating market challenges is a key part of my role, which involves staying agile and adapting strategies in response to market fluctuations, thus maximizing investment value.

Here are a few points to ponder:Market Volatility: How do market fluctuations affect our investments, and what are the best practices to safeguard against sudden changes?

It says the price may fluctuate based on the gas market.