It is unlikely to have a positive cash flow at a 7% or 8% interest rate.In SummaryAs I mentioned, waiting to buy a property only makes sense if interest rates and/or property prices decrease significantly, resulting in a significant reduction in your acquisition cost and debt service.I expect interest rates to rise in the short term, so waiting for them to fall is not a viable option.How much property prices will change in the future depends on population growth where you invest.If the populations is static or falling, I do expect property prices will increase significantly.If there is sustained and significant population growth, I expect prices to rise significantly, so waiting is not a viable option.Hwan, I hope this helps.

Worse case scenario is to turn all units back into long terms and even accounting for vacancy or a 15% reduction in rental rates this is an easy 8 cap property.THE BIG QUESTION:I need to find a structure that supports the financing that I have in place and also takes care of the investors and their needs.

If the seller is not willing to pay for the water bill they’re likely not going to be willing to take a reduction with you on any possible issues that pop up.

So the 20,400 is a reduction of proceeds NOT cash paid in. 2.

The strong demand from investors is leading to a sizable reduction in the inventory of foreclosed properties.

If a residential home ranges from new construction to 10 years old, they in the last year had a reduction in their rates either 20 or 25% which makes them a competitive option from a policy cost perspective.

Our risk model has us 'surviving' with some loss with as much as a 40% reduction in value/rental income with a recovery of property value in two years (sort of like 2009-2011), and recovery of half that reduction in rental income. 

Logically, price reductions are common reaction to activity freezing up. 

LPs and syndicators lose money, maybe a few analyst jobs at the fund are lost, but fundamentally, a reduction in asset values in this category does not impact employment in a meaningful way. 

Over time incentives change once the objectives are achieved… no different than the current Inflation Reduction Act, which will eventually be modified (even if the same party remains in office in perpetuity).