You can get away with using 5% for Class A tenants, but we use 10% for Class B and lower. 3) Tenant Payment Performance: you didn't mention this, but it is important!

Maybe the 600K property area goes from an A to B class area, while the 300K goes from C to B class? 

Class of 2000 here, and take a look at the basketball schedule with the Aggie top 15 basket ball team.  

I've posted about Boutique hotels previously being the next high value investor asset class.. there are several examples of properties that have made 2024 improvements and nearly doubled the income and asset valuation.

Some of the best BRRRR deals I have seen play out this way:You buy a home cheap enough that when you do a renovation and pull out 75-80% LTV, your rent covers your mortgage and you have returned most of your investmentThis is for A-B class areas. 

I acknowledged his concerns but was unable to resolve the issue.Since the tenant moved in, I have experienced escalating issues with his behavior, including:Lease Violations:Moving items without permission (furniture, safe, carpet cleaner, TV from his room to another tenant's room).Accumulating boxes in the garage, potentially exceeding the agreed-upon storage space.Installing a security camera in the common living area, which is a direct violation of the lease agreement.Failure to submit a work order for alleged issues with the smart lock, as required by the lease agreement.Behavioral Issues:Aggressive and confrontational communication.Unfounded accusations and personal attacks.Refusal to communicate through agreed-upon channels.Loud and disruptive late-night behavior (banging on the door, kicking the door) due to alleged difficulties with the smart lock, often accompanied by profanity.Harassment of my son, the designated on-site property manager, by making disparaging remarks about me and refusing to cooperate with him.Potential for Neighborhood Disruption: The tenant's late-night outbursts have the potential to disturb neighbors, although no formal complaints have been received.Unreasonable Demands: The tenant unreasonably demands advance notice of my access to the property for storage purposes, despite the prior agreement and my right to access common areas and my own storage spaces.Safety Concerns:While the tenant has not directly threatened us, his actions, including the harassment of my son, have created a concerning and unsafe environment for my son and me.Goal:My ultimate goal at this point is to evict the tenant due to his ongoing lease violations, concerning behavior, the harassment of my son, and the potential for neighborhood disruption.Questions:1. 

It was before my time, but my understanding is that triggering a DOSC was more common in the 80's during a similar rising interest rate environment like we find ourselves in now.  

@Mike Lambert That is highly dependent on a multitude of factors like size/luxury class/location/housing type/owner restrictions/etc.

Like selling say sec8 properties to get into class A/B, because the $ is there and want easier operations, less headaches, etc.. 

Start with B-/C+ properties for Cash-flow so you can buy the class A and B properties for apprecation.