I recognize this is not the sole source of return, but the other sources have their return increase with smaller equity position. 

Whether we agree with these items or not, the following are inflationary government policies: stimulus, student debt relief, tariffs, increased child tax credits, limited immigration, and big government deficit spending.

I do not care what the source of the return is  Historically the highest return is via a value add and appreciation and is more so recently due to the recent rate increase versus earlier this century (before 2022).However, most new RE investors cannot handle extended periods of large negative cash flow.  

We have a property management company in New Jersey where we make some of our best clients hundreds of thousands of dollars between helping them force appreciation, increase cash flow, finding them deals etc.

Ithaca, 10.8% YoY housing prices increase.

The allowable rent increase is not typically the big issue with rent control, the bigger issue is getting rid of poor tenants that pay their rent.

(example - STR on the back end to increase cash flow)To me, forced apperception (BRRRR or buying at a discount) is a hedge against market corrections.

As an example, our request for rent increase that was submitted in Sep 2023 has not been processed and may never be processed.

This will increase the return above what can be obtained on a passive investment.The flipside of having the power to control everything is that it can be alot of work (and a full-time job if a person is putting in sweat equity).

If you think about it in any industry less transparency and more friction in the transaction will increase fees/commission vs reducing them.I like the idea as an investor of having different agents, a team of agents maybe 3-4 bringing me deals, but I think less of that will happen now as all will have to have you sign some kind of agreement up front.