I looked at historic appreciation for California vs.

Historically, the standard fundamental was that your going-in cap rate should be higher than LONG TERM, FIXED rate interest.  

Let’s say your property acquistion appreciates at the historical 6% per annum.  

On the other hand, I cannot ignore the folks here marketing their DSCR HELOAN products; that number has increased.The underlying situation (obvious to you and me) is that there were historically low interest rates, followed by inflation and equity creation...and folks who want to tap into the equity without displacing their first mortgage. 

I looked at 3 years of historical data and my target was the 50th percentile, which was $34K/year.

My mental calculus is that I want returns in excess of 25% above what the passive S&P 500 Index has returned historically (~8%).  

Then literally hundreds of these of come across my desk seeking financing - and typically the pro forma looks great while the actual historical financials show almost no more profit than Simple long term rentals after paying management fees, higher interest rates necessary for these type properties, increased repairs and maintenance, and faster depreciation.There’s also a personal reason I don’t invest in these properties ( I DO finance them).  

So long as you plan to hold the asset for the next 5-7 years, the historical appreciation/principal paydown should be enough to cover costs of sale, should you need to exit.

Hello,I’m reaching out regarding a unique listing: an 11,000 sq ft historic building located just one hour north of Atlanta in North Georgia.

I know historically Peoria has had some problems, but I am noticing better areas.