I'm considering a commercial property (16 - 1Bed1Ba units) with a current annual rent roll of $170K fully occupied.

@Rakesh Battula, before even looking at the true financials like Nikolas quickly did, there are some things that don't make sense:1: If it is 100% occupied, why are you assuming anything about free rents with estimates.  

Ideally, I would be able to find a deal with a monthly rent to price ratio of 0.8% (for example, a 250k property that rents for 2k).

Plus, they wouldn’t be able to charge extra rent or additional security deposits specifically for pets.Just a heads-up – these new rules wouldn’t apply to rental agreements signed before January 1, 2025.Where Are We in the Legislative Process?

If I'm trying to determine how much to rent an LTR for I'll also use Zillow to see what others are asking for similar homes and how many people have reached out & applied.If I'm trying to determine how much to rent an STR for I'll use the enemy method, AirDNA, and estimates from property management companies.

It's a city of around 55,000 about 40 minutes north east of Indianapolis and price to rent ratios are better than what you will find in Indy when taking into account area and tenant quality.

Typically, if tenants need to vacate, the rent would be abated for that amount of time (just like a probate) until the time they are able to get back into the unit. 

What is your rent rate versus mortgage payments?

(On both the buy/sell commissions and 6% of rent collected vs 8% on the newly purchased property.)They’ve got marketing down, they’ve got the pictures and the contacts. 

If the answer to all three is Yes, I buy.And let life unfold.I have NO IDEA what the ultimate return will be….NONE….And neither does any other investor if they are honest…..most crystal balls I find are broken.But if one acquires the property is a solid long term manner based on fundamental investing principles and is never forced to sell…History indicates the long term trajectory of price and rents are up.In my experience, real estate follows cycles……. 6 or 7 years of a bull market, 1 or 2 years down (though the up is always larger than the down), 1 or 2 years of flat which then sets the floor for the next run up.