In Raleigh, I have my investors focus near RTP as that is our economical hub and where the appreciation historically is highest (and easiest to rent).

NOTHING is for free, someone ultimately pays for it.Maybe, not much evidence of this historically being 1:1.

It had a lot of square footage and already had some cool historic touches.

If you have to submit plans for your build out, historic records aren’t going to get you permitted.

I just wouldn't refer to it as pretty high relative to historical rates. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The main issue looking at our actual historical data seems to be that our actual ADR is substantially below (about 30%) what AirDNA estimates.    

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Historically, navigating the funding landscape was complex with differing program specific funding conditions and amounts, favoring only the most skilled large developers.

.- a cash offer could be extended to obtain a discount at purchase that could be refinanced after purchase- a high cash flow low appreciating market with historical appreciation below the appreciation rate can benefit from the increased cash flow of 0% LTV versus the little benefit (in this case) of the increased return that could result from leverage.The reality is that many cash purchases are not unleveraged for long.