I think prices are softening, however I dont know how much they will soften.

We expect the market to continue to soften but in this case we are going to close on them and rent them out. 

One of the properties comes with an HOA restriction against renting, there are exceptions that one can apply for but it is a drawn out process.Also, I believe there is going to be perhaps further softening in the market and its good to have cash on hand.

Also if you are raising rents by 40% in a down economy with rental rates starting to soften you will need to differentiate your product and keeping wall panels is not a differentiator.

I totally agree- this softens the blow!

Blackstone isn't about to run out of capital, but this storyline does make a few things clear:1) Capital is actively coming out or real estate and into less volatile assets (bonds/treasuries)2) Independent of company size - if you don't deliver returns, investors will take their capital elsewhere3) Additional indication of reduced buyer competition and softening prices in commercial real estate

If the market softens, rehab takes longer, rehab costs more than forecasted, you aren’t able to pay that back and you’re in a tough spot.

Also, if you don't plan for the top and the market softens you will already be better prepared for the resale.2.

Softening market has them being more cautious.

I just did my first one.. it was a house I wanted to retail but market softened a touch.. so I thought I would give this a try.. for me I just hired a good STR PM and I had income within a week of having the home furnished and they did it all for a management fee.. to me the management fee is a no brianer for the busy professional who is doing this as an adjunct to their daily business.