For example, even in the hot growth market of the Dallas area unless there is dense development, townhomes are not suited for that area.  

@Sean McKee - Yea I think 2022 will continue to be a hot year for real estate. 

I'm always looking one neighborhood over or one town over from where things are already hot.

Market is still hot and believe it or not vast majority of buyers do not care about cashflow %.

If you take out that capital and it makes less than the $500 per property then you are net negative overall to your household budget (which is how I look at things).Would selling the properties to unlock 100% of the equity make sense and then you could 1031 into something larger with more cash flow?

Something like that in this market is like a hot tub in the Smokies. 

Buy and Hold in Hot Rental Market

Hard to know, this was a hot summer. 

I'm looking an hour outside the hot Nashville Tennessee market, looking at what industries are in the area, job growth, population growth, proximity to shopping, restaurants, median incomes, etc.

Get good at looking at non cosmetic things like HVAC, roof, hot water tank and electrical panel and put those things in a separate list.