Rising cap rates are mostly tied to higher interest rates—when borrowing gets more expensive, investors expect better returns, which pushes cap rates up.

I would expect no less here.

(Land and construction cost, expected sale price, etc.)My last development in Chicago looked like this:Land = $300kConstruction Cost $650kHolding Cost/Closing Cost/etc. $50kProfit roughly $100kThat project was in Bucktown on the nw side of Chicago.

Some other banks will tell you 40% to manage your expectations but if you have a good credit and a the deal makes sense, the down payment shouldn't be above 30%.As to the managing of properties, if you can self-manage out-of-state in the US, there are no reasons as to why you couldn't do it internationally too and some investors do.

Even then, you can expect they won't be able to maintain the home to the same level you did while living in it.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Quote from @John McCullough: Yes,  I invested in the Lone Star Portfolio earlier this year and the distributions and improvements are preforming as expected.

Good question here, generally speaking one year is the expected timeframe before you would be able to purchase a new primary residence (also referring to how long you would generally be expected to reside there). 

It's still early but we're expecting tenants to use the service for 9-18 months, and about 45% to also order the extra reporting of their previous rent payments which costs ~$20-25.

You want to put everything in writing and be very clear about expectations and responsibilities.You also need to verify the remaining tenant can afford the rent.