In Metro Detroit, and I'd think in most Midwest cities, investors really have two options:1) Buy Class B and either put more down to cashflow at closing or deal with 1-3 years of negative cashflow until rents increase.

@Placeholder PlaceholderOne word of caution I would advise: If a community or local government is enacting restrictions and also regularly enforcing them, then its often a reflection of the local community sentiment which increases the chance of a neighborhood or nearby resident calling you in if they think you may be running an STR.

As an example, our request for rent increase that was submitted in Sep 2023 has not been processed and may never be processed.

This is where your focus should be, not buying section 8 rentals or focusing solely on increasing your portfolio by 2x, 3x etc.

Do you need to increase rents in the next year to cover your costs?

Housing has always been super affordable there, and new construction has increased in recent years.

Target areas with high rental demand, job growth, and population increases to ensure strong occupancy and appreciation.

the property’s rehabilitation is scheduled for completion in 2025 and the rent will subsequently increase, can I proceed with a cash-out refinance based on the current rent roll?

The increased risk is generated by the fact that the owners are relying on the validity of the tenancy in common Agreement for their usage rights, and it is possible to imagine legal circumstances under which this validity might be undermined.- If the subdivider or someone with relationship to subdivider sells, a public report must be done.

My terms are identical to yours as far as the 1-year lease with 3 options to renew (for them), 3% yearly rent increase, etc.