It's crucial to evaluate how the deal performs with the new mortgage:Updated Financials After Refinancing: Market Value: $459,000 Mortgage Amount (80% LTV): $367,200 Equity: $91,800 Interest Rate: 5% (30-Year Amortization) Assuming after 12months the rate will drop to 5%Monthly Expenses: Mortgage Payment (5% Interest): $1,971 (Now you are paying interest and principals) Property Tax: $260 (assuming has been increased with a 4% from last year) Utilities: $361 Insurance: $104 (+4% Adjustment) Vacancy: $166 (now after 12 months we can assume we have some vacancy at 5% factor on annual rent) Repairs & Maintenance: $166 (now after 12 months we can assume we have repairs at 5% factor on annual rent) Total Monthly Expenses: $3,028Rent Income after 12 months assuming annual rent increase at 5% : $3,323Cash Flow: $295$ per month 😊Long-Term Gains: $5,418 Principal Paydown year 2 (this will increase each as you pay off your mortgage $36,720 Property Appreciation (assuming 8% per year) $3,540 Cash Flow (this will increase as rents rise)Total Annual Return on Investment: $45,678 with just $ $22,789 remaining in the deal.

If 2022 or later the values have dropped due to higher cap and interest rates so if you have gotten any appreciation at least you haven’t lost money. 

Quote from @Leslie Chukwuleta: You arent wrong on the Equity drop.

Event with all that the sale prices have been over the list price on average close to 1.5% over, which would seem a bit counter.If rates end up dropping a decent amount at all the prices could rocket even with inventory growing again. 

Then it dropped to like 30% of its original value.

I respect your many years of experience Jay but want to bring some perspective from the other side of the table.In a corporate office which is running 10, 20 or even 50 projects at once (depending on the firm size), what is the benefit for the Architect to drop their other projects to jump on yours quicker?

The biggest drop in value is when you drive a new car off the lot.

Rent in many markets have dropped substantially and new renter may not go for that amount at all.Having said that, in markets where section 8 is king, you may see a higher FMR (Fair market rent) with section 8 than most.

Quartz countertops, fully tiled bathrooms, higher ceilings and doors, LVP flooring throughout. for us its upgraded appliance packages NO micro above the drop in stove.

The current owner has to drop down to 12 or less till they get the sprinkler system in and engineered plans submitted to the county.