If you are out of state I think B & above areas provide for a more pleasant investment experience but many still go after the low price points and higher rental yields of C areas.

Fix it up, bring it up to the standards of the surrounding properties, bring the rents up to market and you’ll force a lot of appreciation to build a lot of equity quickly as well as create positive cashflow in time.

Obviously rates are much higher right now than when I locked in my rate almost this time last year, so at this moment in time it would not make sense.

There are a few ways you can play financing the property, depending where you are with it in time.

The docs did not arrive in time to title to close on 3/20, so I got a 2 business day extension to close (3/24). 

As long as you have a mastery of Subchapter K of the Internal Revenue Code, know what to look for regarding the various obligations a partnership tax entity would be exposed to based on the facts & circumstances, and have an intimate knowledge of the various elections that are available to the partnership, you should be a-okay

@Isacc Lightbourn plenty of members have already posted responses, so all I'll add is that a cap rate is a "moment in time" valuation that is only as good as the data used to plug into the calculation.

The other problem is that when people look at cash on cash returns, it is usually just a snap shot in time.

What you are looking for is a free lunch - no effort required on your part to provide a pleasant experience for your guest (by regulating temp before they get there).

No matter how well you screen in time a bad one slips thru the cracks.