My guess is that with the recent fire policy changes in CA there are likely caps on the fire payouts and many homeowners will be in the situation of example 2.

More than likely the asset will in a location where cap ex & management/operational costs are disproportionately higher and therefore your expense ratio will also have to be adjusted to a higher number.  

But, when you combine all the potential lost income and damages, I will definitely be the losing party since there's a cap on small claims.

@Ricky Hernandez  We bought in two different communities that had no rental restrictions then later imposed cap of 10% rentals. 

I am not sure what my next move is (stay with the DST and lose $ or move to the REIT and eventually have to pay cap gains tax if performance isn't good). 

With your balance sheet and cash, you can put together creative deals without giving up equity and without using your cash but you are going to need to find a market and product which has 7-8% cap rates.I invest in the northeast, Great Lakes area.Diverse economies with education, healthcare as the back bone and tech as growth.In your area, you’ll have to raise way more capital in the form of equity just to meet DSCR with the banks.

The real issue is that they didn’t have a plan to monitor usage or set up protections to minimize costs during the eviction process.Ideally, the PM could’ve done things like:Limit access to unnecessary areas to reduce power use.Install smart thermostats to keep heat at a safe minimum.Request a utility cap in court during eviction proceedings (if allowed in your area).Bottom line: It’s less about the utility switch itself and more about proactively managing costs once the tenant overstayed.bro what? 

For example I know many who are now just lending because they are getting 10-12% short term which is far better than any cap rate on real estate. you do not have the equity upside as you do real estate but its a way to play the short game to see what happens over the next 12-24 months and decide when you want to buy.

Selling it now vs renting, will give your dad more money and he won't have to worry about renters or cap gains. 

Haven't seen an 8.5% cap since 4 qtr. 2009!