In its current state:Current NOI: $79,058 (based on 80% occupancy).Current Cap Rate (at $1.25M): 6.32%, reflecting the property’s as-is performance.Value at a 7.5% Cap Rate (Market): $1.05M, based on current NOI.Given the renovations, vacancies, and risks tied to stabilizing the property, I’m considering offering $850K to reflect its current state and value-add potential.

It seems like you have some very solid goals of multiple income streams, and a well calibrated risk tolerance. 

I think one of the biggest risks you face with Cash Out is interest rate risk.It's really difficult to predict where interest rates will be in a 2-5 year time period, so it can also be challenging to model out future mortgage rates.

I feel like that will happen at some point and don't love that risk. 

That is the true value of participating in things like this that are a bit more involved. 

You can mitigate risk along the way.

You’ll learn the ropes on how to be a landlord with a lower risk/higher quality tenant-base. 

Although there is potential profit in this kind of profit, there is also more risk associated as the repair costs can pile up quickly and create a scenario where you have invested more into the property than the repaired property would actually be worth. 

The lower the score, the higher the risk and the more we charge for a deposit.

I'm certainly cognizant of the risks of managing a property remotely (my wife and I did rent out our Chicagoland house for a couple years while living in STL).