other 721 may have even higher annual maint. fee  and dividend 3% is about the right one for cap rate 3-4%.

When cap rates were 6-7% and rates were 4% most deals were 75-80% LTV and you might exceed the 1.25x DSCR requirement but a bank wasn't going to go above 80% LTV.Today rates are 6-8% and cap rates are 5-7%, so your lender is probably going right up to their DSCR level, which is probably around 1.25x DSCR, and because your occupancy is lower, you're going in cap rate is not great, and because occupancy is lower it's probably viewed riskier so your rate might be higher. 

In CA, the tax increase is capped at a maximum of 2% so it will definitely be less than 5%.  

A completely paid off property purchased at a 6-7 cap, and appreciating at 3% per year long-term is a 9-10% return with very little tax.

I would consider putting that into a renewal lease if you do not have a cap built in.

Expiring rate cap?

Based on the numbers, it sounds like the high origination fees, combined with the 70% LTV cap, are driving up the costs, especially if the lender is being conservative with their appraisal values.

.* Annual limits apply to how much can be expensed, with the 2024 cap set at $1,220,000, and investment limits that start to phase out when more than $3,050,000 of property is placed in service.* Not all property qualifies for Section 179.

Many of these projects derive 50% or more of their overall profits from reversion cap rate assumptions and some type of compression that probably doesn't exist in the current environment.  

I don't consistently track my cap rate, ROI or net worth which I'd like to do more of.