Many of these projects derive 50% or more of their overall profits from reversion cap rate assumptions and some type of compression that probably doesn't exist in the current environment.  

My conclusion then was this: if an investment pencils as cash flow breakeven or a small positive cash flow, using conservative underwriting assumptions, it would be worthwhile to buy despite the high interest rates.Real estate investing has three main sources of wealth building: cash flow, appreciation, and tax benefits.

@Vincent DeLucia check out our website where we have the entire Metro Detroit area listed by Property Class and the 183 Detroit Neighborhoods.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Finally- on the sale side- the mortgage assumption is a nice sales angle, but your buyer pool is really small for that.

@Jacob NevarezRecommend you figure out the property Class you want to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

I'm having to make some assumptions because there is missing info in your post, but it sounds like the flex space doesn't have a separate door to the exterior.

For anyone else that responds, please refrain from assumptions, allegations or opinions.

Here's some copy & paste advice we hope you find useful:----------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

You could figure out roughly what range the properties you would be targeting would cost and use your own assumptions to come up with something similar.

Personally, if I see a property that went back on the market after being under contract, my first assumption is, 'What did the buyer find wrong with it?'