I base the price on a few factors - Room size, amenities and area average rents. 

So most investors just throw in the same expense factors no matter the age of the property.

What Ray predicted seemed to make sense, but unfortunately there were other  factors that  interrupted his predicted scenario. 

The renovations were already factored into the LTV during the initial loan approval, and the increased value of the property due to those renovations may not automatically allow for an earlier PMI removal under Fannie Mae's standard policy.Workaround/Next Steps:Reappraisal: You might be able to request a reappraisal if the lender is open to it.

Factor in vacancy.  

There are more factors than just pure cashflow and it seems like you are in a good position to be successful.  

These two factors will get investor rates down to a reasonable level.

That's certainly one of the factors since 1sts tend to have tighter margins than junior liens.

My gut reaction would be that price is high (granted I don’t know the area at all).But if it has been sitting on the market- which it was listed in 2023 for close to $200k less and did not sell my guess is price is the factor - while offering owner finance - it’s only good if it could still provide great cash flow while not overpaying.

@Rud SevCap rates in NNN deals are influenced by factors like tenant quality, lease terms, location, and lease structure.