Now this home had been owned by previous owners since 2010 and they had not kept up with rent increases or updated the units.

@Maryam Mostafa chasing a 12% Cap will require:1) High risk properties Class C or D2) Getting lucky and getting the property under market value3) Doing a LOT of hard work to find an owner willing to sell under market value4) Doing the above to find and reposition a poorly managed propertyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

If the rental numbers are inflated by the owner and you aren't sure about a lot of other factors (insurance costs), why not look at other properties?

Fortunately, a substantial amount of equity has been built up in recent years, and a near-term maturity may serve as a catalyst for owners to take profits and recycle the capital into new venturesHere are several graphs illustrating the current national commercial industrial market in The United States of America:Full Commercial Industrial Market Report Here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1189855/United_States-Industrial-Capital_National-2024-03-10_a.pdf

However, if I spend a lot of time and effort getting a property up and running and then, after a few months, the owner cancels, I'm probably taking the full 10%.

The asking price is $250K ($100K down incl. repair and $150K owner financing at 4.1% for 5 yrs). 

From: https://www.irs.gov/publications/p925#en_US_2022_publink1000...Qualifications.You qualified as a real estate professional for the year if you met both of the following requirements.More than half of the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated.You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.Don’t count personal services you performed as an employee in real property trades or businesses unless you were a 5% owner of your employer.

Im just saying that in the future if/when you go to sell an owner occupant will likely prefer a central AC system so that will make your home more desirable and theoretically worth more.

They are solid and have been good to me as an out of state owner/investor.

This road has residential homes and vacant commercial properties on it now, and if i decide to move forward, i will be the only property owner taking on these costs.