.- Perhaps you think rates are going to move lower.

The high school sits right on this road and so do all the big box stores and restaurants.

I am looking at my first rental property investment, with the current rates and San Diego pricing cashflow is very hard, so I wonder if I should remove tax property and insurance from my cashflow calculations as they are 100% deductible at some point.

Then Covid hit and rates dropped.

You cannot spend too much time on any one door because you cannot charge beyond the market rate for any single door, so each door needs to follow the process efficiently and precisely. 

Here are a few: I just saw a LinkedIn post with a sponsor talking about how they are underwriting using cap rate compression, meaning that in 5 years the sales price cap rate will be 50 bps lower than the purchase cap rate. 

We're considering our options for moving forward.Numbers:Purchased for ~ $230,000 (2.5% interest)Remaining balance ~ $220,000Appreciated to ~ $400,000Cash flow is ~ $500 a month after setting aside for all reservesOptions we're considering:1- Cash out refinance- at current market rates, rough estimate is that we could access close to $100,000 in equity, but our cash flow would go to $0 or possibly negative for a period.2- Sell now - if we sell before the end of the summer, we could still qualify for living in the property for 2 out of the last 5 years for the additional tax benefits.

My CoC return in STL is 10% now that the buildings have stabilized, it seems like the buildings are appreciating at an acceptable rate, and I have a team that I trust there (realtor, PM, contractor, lender). 

And if they aren't, it will reflect in rates going much higher for the risk.

Cap rates are pretty useless.