Which is code for- has a great profit margin after expected repairs.  

One of the investment strategies I currently like is purchasing physical silver taking it to money medals in Idaho they will give you a margin loan against the silver for 75% of the value.

I agree even on 2-4s which is what I normally focus on you need a solid margin between cap rate and debt rates.

Since you’re buying at fair market value, there’s no room for margin.

You don’t have to research very far to see the widespread housing trends toward more micro-apartments, co-housing situations, and all the other ways people are voting with their rent dollar in wanting a better value proposition at the affordable end of the rental spectrum.Vacancy for an SRO can be kept quite low, and the density results in a very high cashflows compared to the same square footage of a triplex or 6-unit down the street.Utilities bills are marginally higher with the SRO, because there is no incentive for tenants to conserve.

As others have said, the other properties dont appear to have the margins/equity for cashouts.

I think since it's 'new construction' I assume it's way more complicated, and I'm sure it comes with different challenges and factors to consider, but as long as you buy it right, have supporting new construction comps, and are confident with your cost per sf analysis, you can hit your target margin - or close to at least! 

It sounds like wholesaling could be appealing due to avoiding some of those costs, but the margin is slim between your total investment and the ARV.

What factors influence your decision—profit margins, market demand, or investment strategy?

I understand dead money but with high interest rates and putting minimal money down or re-fying leaving 80% LTV the margins on SFR's is extremely tight.