@Bryce JamisonEverything I own is built in the 1900-1940 range.

Rents for medium term rentals usually range from 1.5 times to 2 times the normal rent for a place.

Rates will range from Prime (currently at 7.5%) to Prime + 4% (11.5%).

Each jurisdiction is slightly different but from past experience if your looking for a NEW detached ADU its going to be in the $4,000 - $6,000 range (depends on SF & components) but if it's an addition to an existing occupied building then it will be much less.

So it takes comprehensive knowledge of the market trends, zoning laws, the local municipalities approval process, survey cost, subsoil conditions, irrigation requirements, development cost, utilities (gas, power and internet), city water or well water, city sewer or POSW to name just a few...A builder developed the farm field next to our SD, bought it for $1.5M and wanted to build 25 homes as a conservancy subdivision.

Looking at this mathematically, if you assume a 50% non-renewal rate (industry standard) and use the low end of the range of $5,000 per non-renewal, there is a loss of $50,000 per year on a 20 unit property.

I agree that rates have naturally adjusted with the rise in the Fed rate, and it seems like the 10-14% range may become the new normal for a while.I’m curious—what’s your outlook on how this rate range will impact new investors entering the market?

They range from 50 units to 500 units.

A very wide range of property managers are incompetent and feckless.

I get it with the builders.. we saw that big time in the GFC however the deals I saw was them walking away from substantial EM deposits deep into the 6 figure range.. we did well picking up some lots from lot developers who had this happen to them..