We make 2nd mortgages on investment properties, the CLTV is usually capped at 70%.

Flood insurance increases are capped at 18% per year, which is still alot.Many of the most expensive houses on the bay are being bought by people who are wealthy enough to self-insure.

They are offering lease terms with a cap rate in the 12-14% range.

They should still have a $300-500 cap on what they can do without your approval and need approval on anything above that amount. 

I’d love to hear what metrics or signs guide your decision—whether it’s ROI, cash flow, or cap rates.

Typically you are hard capped at 75% LTV on a cash out refi. 

The past few years, the older fixer uppers were trading at 4 caps.

I just got, about 20 all will be about 80k all in, All with have values of about 115- 120k, All will have about 15% or better net caps, Its all about you network and knowledge.All the best  Congrats & I agree!  

You are not crazy :) cap rates on storage got pretty crazy in the last decade as the space has become crowded and money was cheap, starting to see some reversal of that now, but its tough to find deals at a true 10 cap (10 x NOI or NOI / .10).

However, there are numerous ways to CREATE investments that have 15% or more cash flow AFTER repairs and allowance for cap ex.