If their interest rate is 4% on those, then they are “making” the equivalent rate of return (4%) as the DST scenario you outlined above.

No issues and tenants are renewing.That indicates tenants were paying below market rates.If the market rate for a 2-bed/1-bath apartment is $1,000 without utilities included, then he should adjust his rate to $1,100 because it includes $100 in utility cost.

It seems like everyone is preparing for a big boost.The current growth rate seems feverish but I've seen a lot of houses going up to prepare for the influx of population.If you have any questions, I'm available to answer them.

For example, in Phoenix (where I’m based), cap rates have compressed over the years, but strong rent growth and job migration have kept deals attractive.. compared to, say, San Diego, where the appreciation play is stronger than cash flow.

If tenant has been great and you have had no issue, I would be hesitant to drastically increase the rental rate.

In this case they were offering below market interest rates in connection with a lender.

The greater the differential in interest rates between the interest rate of the loan on the subject property and the prevailing current interest rates between the greater the probability that the lender will accelerate the note.  

With rising housing costs and mortgage rates, many buyers see ADUs as a way to offset expenses by generating rental income.

About 50/50 success rate. 

They have definitely become more challenging since rates have gone up.