Maybe they are implementing a broader set of data points.

I would highly recommend implementing this investment strategy first so you can dip your toes into real estate before trying to tackle a BRRRR deal. 

As a Cap Rate is indicative of the risk involved in owning the property, you want to focus on doing things that make your investment less risky if a bank ever had to take over.You can make your investment less risky by doing some of the following things:- Convert all month-to-month tenants to annual leases- Implement strict minimum rental criteria- Add security cameras- Make large capital and preventative improvements (fix drainage issues, install water pressure regulators, replace old HVACs...you get the picture)- Essentially, prove with action that you are caring for the property on a long-term basisThe only way this is effective is if you document everything you are doing as well.

@Julia FranceI recommend a consultation with a real estate tax strategist to learn, develop and implement tax strategies available to real estate investors. 

I recommend working with a tax strategist to develop and implement strategies to reduce your tax obligations. 

Although very few can implement it.. again back to the Car salesmen just look up on the wall for the pictures of salesmen of the month or year.. thats the guys/gals that know how to take control qualify and close.

I want to convert my current residence into a SFR and look into buying a duplex to implement house hacking and reduce monthly expenditures while also getting into another property.

As someone with a CPA background, I emphasize more than anyone (perhaps with the exception of the truly amazing @Michael Plaks😄) that a nuanced approach is required for tax tool implementation.

I’ll have to implement that as I progress, that’s very helpful!

This requirement applies regardless of the property's purchase date, even if acquired before the implementation of this ordinance.