@Robin Simon Our AE with Easy Street was super helpful and informative!

From Investopedia:What Is the 2 Out of 5 Year Rule?

There are a few markets out there that still meet the 1% rule.

I work with new investors every single day so it is easy to get started. 

Will your identified markets be an easy or difficult area to sell once it’s time?

Milwaukee has not been easy to BRRRR for the last 3 years: with ultra low inventory sellers just did not have a need to give a discount for condition.

This ruling will basically bring those 2.0% listings up to 2.5% co-op the difference will be paid by lender/seller credits, etc..

Yes, you can make money but it is easy to lose money. 

They too should know the rules.

I’ve been wondering that same thing.Seems to me when comparing candidate investments, why would I pay more for an investment with risk and work (5% Cap multifamily), than a risk-free passive investment (5% CD or T-Bill).Note that going from a cap rate of 5% to 10% is a 50% drop in price…that’s significant…easy to see why a seller isn’t willing to give a higher return.I’ve asked the question before and gotten answers like it’s because investor borrowing costs vary, and you must consider future rent growth and appreciation … I guess if you have low borrowing costs and are optimistic about the future a 5% cap rate makes sense.