, but if rates are much higher when you go to refi, it could make refi'ing less desirable, or even impossible....Another variable to consider: values may flatten or even decrease in the foreseeable future (most markets have already seen big increases in inventory, days on market, and price reductions). 

Most of the properties that generate this much cash flow are in economic deprived areas and your variable costs will be significantly higher.

I use a JV / partnership agreement that clearly defines each partner's roles and the variables that can happen for the outcomes such as the death of a partner insolvency, etc. if you have a JV that involves more than two parties, then your muddling more so into securities and raising capital. 

What variables you look for to assign a grade/class to the residential real estate units?

But hands down, the most important input variable is relentless persistence.

The challenge for many buyers is identifying properties that offer profitable and reliable returns, as due to the increased costs of financing (and just about everything else) it is increasingly challenging to secure CAP rates and net returns of 10%++There are a few variables specific to this market and economic environment that buyers should also consider when analyzing investment property financials or pro forma's.

That is correct Caroline, payoff the HELOC since the rate is variable.  50 percent of the property is residential.  2, one bedroom short term rentals. 

@Simon Sanchez Your variable expenses might be high.

The proposal I received has the following facts:Total fee is between 2.1% and 2.5% depending on how much time the mortgage broker has to spend getting the deal done.Fee is due in phases before closing (1st at proposal acceptance, 2nd at issuance of lender commitment, 3rd schedule loan closing).These fees are in addition to any fees charge by the lender, which will be provided after I accept this proposal.In reviewing this proposal, the variability in the rate charged and the fact that the fee is due before loan is closed gave me some paused.

Quote from @John Carbone: There are a lot of variables here.