They are capped during ownership but uncap upon sale. 

If you want to be conservative, stay around 50%-60% LTV, especially if your cost of debt is lower than your cap rate, as this will lever your ROE.

Cap rate was still decent when I sold it, even at its updated value, versus alternatives.

I will also set aside cap ex, vacancy, maintenance from the cash flow every month.7.

@Jeff Fortuna@Dan Rowley I am getting 8.5 percent cash flow that is about 60 percent tax free from the mag syndication with a cap gain coming when they start selling properties.  

But they won't be 1 percent in a year or two years because C- to D+ properties have trouble tenants (sometimes) and high cap ex.

They also cap on rent rates based on the number of bedrooms for the tenants voucher so some of my rentals (depending on the location) will bring more rent than what Section 8 will pay .

It’s a familiar debate, as Californians have faced this choice twice since 2018.Under the 2019 Tenant Protection Act, rent hikes have been capped at 10% per year or lower if inflation rates dictate.

Another option that I know of that would cap you at 50% LTV. 

If so, would they be capped at the 60% bonus depreciation limit of the purchase year or <40% limit depending on the year they met their material participation limit?