As of this morning, WSJ Prime is 7.75%, so I would expect the rate to be over 8% at the very least.

Since comps are limited, analyze similar nearby locations to estimate demand.When pitching investors, focus on a clear business case: expected income, expenses, occupancy, and ROI.

You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

And I wouldn't expect them to, it's a self inflicted thing.

So after the first year, expect $5592 annual cost on property tax to counted as an expense for a reduction of cash flow in the amount of $5592 per year.3) Your assumption for HOA dues was $1000 per year. 

As far as studios go, 280K is a low price, but without knowing the expenses and the rent you can expect there, its tough to say if the deal is good or not.

The numbers may look good on paper, but the reality is very different-lower quality tenants, higher turnover, more problems and less money than you'd expect as a result.

@Diana Teng there are a LOT of potential pitfalls:(So, it's vitaly important to not just find someone that you think you can trust because they tell you what you want to hear, but you find someone that their processes seem a good fit for what you want.EXAMPLE: we do BRRR Turnkeys for clients and take numerous vides we share with them - initial, worst state of any demo, when HVAC, plumbing, electrical update BEFORE walled in, before any major payouts and of course a final walk-thru video.One thing that's accurate from all the HGTV renovation/flip shows is that you should expect and plan for surprises!

My take on this is to underwrite purchases based on expected LTR rents (I like rentometer and the BP's own rental estimator), but start charging 1.5x that rent for your MTR.

Expect the unexpected and give it a number.