Do not buy anywhere if the state or metro populations are static or decreasing.

Projected NOI = $493K, primary through 3% lower vacancy, income from Utility because the current rent is inclusive of utilities and the Sponsor do not want to include Utility in the new terms, and reduced operating expenses Potential gross rent = 1.1M, minus 7% vacancy & other cost, Net rent = $970K (80K increase) Other income = $42K Add income from water reimbursement and electricity: $134K ($134K increase)-------- Real Estate Taxes 108K Insurance 42K (40K cost decrease) Property Management + Asset management 45K General & Administrative 15K Marketing 10K Payroll and Payroll Taxes145K (65K cost decrease) Repairs and Maintenance 46K Contract Services47K Electricity 77K Utilities Water 64K (60K cost decrease) Utilities Gas 15KI found the Sponsor through a very close friend a mine, she works in PE industry and she is very well analytical and she invests.

If owner occupies one unit and not paying rent, the income decreases so as the value.

That means the value you can add will come down to how you can decrease expenses or increase income.

It would decrease the cashflow and we don't necessarily need the cash to purchase new properties because we have flips going for those funds. 

You can also offset the income with expenses so your tax liability decreases.

Read the fine print and the math on your net return after taxes with the savings and CD’s and compare it to 3%.If you plan to buy a property and you need to decrease your debt to income ratio to qualify for a loan, then it’s a no brainer.

I have a really great form with Q&A I send to my tenants addressing questions about hotel reimbursement, rent decreases etc.

It decreases each year after that and there is no withdrawal fee after 5 years. 

Interesting, maybe the Gen 7 is significantly better than previous models, including the decreased need for deployments.