I would think most landlords, who choose to be landlords in very Tenant friendly San Francisco, would pony up the 5.2% knowing that the rate has gone up and down throughout time, unless they want to run the risk of their tenant's finding out and called out as being a bad landlord, being taken on by the very helpful San Francisco Tenants Union or taken to Small Claims Court.Maybe there is a silver lining in California's recent change in security deposits that limit it to one months rent when it used to be up to 2 month's rent for unfurnished units and up to 3x for furnished units.By the way, I took a look at your Company, https://www.getwhale.co/  Since your firm is only offering 4.2%, were you trying to market in San Fran before discovering the Rent Board rate?

I am just struggling to figure out how I would afford the monthly interest expenses as construction on this type of project would take a ton of time and money.The building will be luxury student apartments which on my rough calculations can have realistically 60-65 apartments or 180-195 beds.

Hi Giman - It's a great time to explore your options with the recent rate changes.

Also, shiny object syndrome I understand and have a hard time with that as well LOL, but find what is reasonable and actually attainable, those things will come with time, real estate investing is a marathon, not a sprint.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

I have been considering for a long time investing in multi units.

I'm Val, I'm a full-time therapist, part-time photographer and everyday creative looking to translate my skill set into house flipping and landlording.

They admitted it was after a drunk driving incident, which at the time was a major red flag but I let it slide. 

And lastly, make sure the property management company has experience leasing and managing Section 8 properties, since there is a lot paperwork and processes, and I've seen experienced property management companies who do this stuff all the time, screw up on multiple Section 8 leases to where the tenant's packet expired because they were so incompetent.  

Hey Josh,I really like your approach to buy-and-hold investing by purchasing primary residences and turning them into rentals over time.