He's not naive to think there wasn't more wayyyyy more at play, but rather that this was a contributing factor that added fuel to the dumpster fire.The US Population growth % has been declining since the 1990s so it's not totally new, but we've been able to shave off less births with immigration.

There is a calculation for vacancy rates as well, which needs to be factored in.

The other huge factor is your CoC return on that money, so dependent on how much you're putting down. 

Turnkey made sense post 2008 when even factoring in profit for the turnkey company there was enough meat on the bone left for an investor.

Point is that DA's (in my own real world experiences) are typically lower than full appraisals and clearly cannot account for factors other than hard data (bed/bath/square footage/lot size).

And the 868 cash flow is with everything included I made sure to factor everything in with cap and insurance and property taxes as well.

Dig deep a few level to decide what your driving factor is.

First, a PMC has no ownership in a property, so once you factor in appreciation and equity, owners should make far more than a PMC.2nd, every owner thinks that PMC's charge too much, yet they expect excellent service!

Its a fair exchange and the solution is either a yearly mark to market or hedge expenses via NNN.You also factor in that your existing lender, if serviced for 5 years, considers you less risk especially on a tenant renewal so their interest rate may be lower than "market."

Whether it is considered long or short term debt you still need to factor the payment into your debt ratio.