It is a very challenging market for many Loan Officers and Brokers.

@Srikant PuvvadaI wish I could answer this question directly, but cap rates are highly dependent on the market and asset type.

Plus we get a lot of people moving here from out of market and when coming from Chicago, New York, or Los Angeles, it looks like everything is on sale here comparatively speaking. 

https://www.biggerpockets.com/blog/best-college-markets-for-...We cover this and more in our weekly BiggerStays newsletter, which is for all things STR.

But if there is ample room in the bedroom and you can take a single sink to double vanity, or add a dedicated water closet, or take a 3x3 shower into a 3x5 or larger, making the bathroom more luxurious, than I could see a good ROI on that.While the area may be very nice, the price point you are talking (and I don't know the specific market) is borderline starter home prices.  

Especially now that guests have a lot of options in most markets.We used to have it off when it was a lopsided market but now it is more competitive you need to remove as many barriers to renting as possible. 

Unlike real estate wholesaling of finding homes off market - notes are not off market2.

That experience pushed me to grow, learn, and ultimately do what I’m doing today—helping others create successful off-market real estate strategies.

My company has discovered a niche and under valued market in Cape Breton, Nova Scotia.

If you do, then you can sign a new lease at market rate with pet rent, deposit changes, etc.