Houston – High rental demand, and with its diverse economy, there are strong opportunities in growing areas to balance those rising property prices.2.

Even with rising prices due to inflation.

@Jeff Fortuna@Dan Rowley   @John McKee - I'm receiving roughly 7% CoC returns for my two investments, with projections those will rise in future as they are able to realize contractual rent increases.

Good lesson on what not to do in rising interest rate environment.Thanks @Kevin Hoover for the detailed response. 

For 2500 of the mailings he predicted the market would fall in the next 3 months, for the other 2500 his prediction was that it would rise.  

MY LTR's are mid-tier for their market and have minimal cash flow at the moment so it all gets eaten up by  repairs and manager fee, my goal with these is mainly long-term appreciation and eventual cashflow as rents rise. 

It goes deeper than that.NYC Liberal policies, including strong tenant protections, increases the risk of failure so much that the risk far outweighs the rewards.Financial ruin is just around the corner for the small Mom and Pop Property Investor that it doesn't make sense for them.The Tenants will have free Attorneys that are bent on delaying eviction cases so long that it stretches into years while Mom and Pop suffer from lack of rental income and still have to pay all the bills and do the management.Additionally, the increase in homeless living rough in the streets due to Sanctuary laws causing a lack of shelter beds, then evicting shelter residents after 30 days creating more homelessness, policies that tie up the Police's ability to arrest perpetrators, etc. only causes Mom and Pop to sell out at large discounts to larger Landlords who are capable to use Economies of Scale to eek out a profit.These larger Landlords will eventually turn a much higher profit as the pendulum will eventually swing towards the middle when the NYC Voting population eventually realizes that it's not a conspiracy of the Rich that's causing the Wealth Gap to increase.It's the same liberal laws that encourage people to become lifelong tenants, small Entrepreneurs (including Property Owners and small Mom and Pop Businesses) to be destroyed, and Rents to rise astronomically as housing becomes scarer even when the population declines by as much as 7% in the last several years. 

The second piece is whether or not you pass the Material Participation Tests found in IRC 469 and the third piece is whether your participation rises to the level of Substantial Services (think hotel, B&B).4) My CPA Says I can't deduct a loss that was generated! 

Markets with balanced property prices and strong rental demand will be key.While rising prices and interest rates may impact cash flow, with careful deal analysis and a focus on areas with good appreciation potential, it's achievable.

Squatters are on the rise.