I'm hesitant to set a utility cap, as I worry that disclosing a specific amount (like $500) could deter potential tenants.

Purchase price: $715,000 Cash invested: $297,000 Current Price: $830,000 (originally $950,000 on 4/13/2024, reduced by $120,000 in 6 months).

i think its very property and location specific.

But the likelihood of success with that depends on the specific street.

You can potentially purchase multiple properties, which is a huge plus for spreading out risk.

Purchase price: $545,000 Cash invested: $545,000 New Construction Duplex - Beautiful Design and very nice curb appeal. 3 bedrooms 4 bathroom - All bedrooms have private bathrooms.

Purchase price: $565,000 Cash invested: $200,000 Current Price: $599K (originally $649K, 67 days on market).

I will provide some thoughts on the San Diego purchase- virtually all high LTV mls purchases since rates started to hike have negative cash flow at purchase- historically great appreciation- historically great rent growth but recently flattening- prop 13 is great benefit for long holds- laws keep getting less LL friendly.

-Unless renewed, All MTR leases end and a specific move-out time is listed. 

But if you have a cash buyer who is specifically looking for income property, and even more specifically a vacation rental property,  I firmly believe that there is a value add from having a working STR there.