Portfolio = Income derived from financial instruments like dividends (including REITs), interest, royalties, and capital gains.Mostly income w/out loss potential, and favorable tax rates.Cap losses may offset cap gains w up to $3,000 loss.

While it's true that many investors are drawn to the Midwest for favorable cap rates and the 1% rule, Las Vegas still holds potential, especially for short-term rentals like Airbnb due to its high tourism volume.

We are seeing really values on properties and decompressing cap rates!

75% LTV is the cap on cash out with many (but not all) lenders, so I'd make sure you have a viable option for 80% before you make your decision.

Looking at my numbers right now...and it's at a 7.5 cap rate and 8.45% cash on cash.

., more than half of the calendar year) for the Borrower’s personal use and enjoyment"This means that you can only book it out on STR platforms for half of the year (50% max occupancy), which really sets a cap on your max income. 

Your loan may also be capped at 65 or 70% of the after repair value.

We use a custom spreadsheet and DealCheck to break down key metrics like cash-on-cash return, cap rate, and debt service coverage ratio (DSCR).

I think your best approach is to pretend you are the investor yourself, calculate build cost (mortgage with interest) + Maint / cap expenses/ management fees according to your zoning and then compare that to the average rent in that neighborhood.

Conventional at 5% down would cap you at 3% concessions, but generally is more lenient with employment history and property condition.