If interest rates stay here for 24 months, there will be a 30-40% price correction on commercial real estate.In-place 8 cap deals with 40% expense ratio on tertiary storage. 6-7 cap on class A product.Multi will get crushed. 6-7 cap pricing on class A.Equity will be totally gone on a lot of deals acquired since 2020.A lot of forced sales.Not as bad as 2008, but a lot of variable debt coming due in the next 24 months that owners can’t cover or replace at new rates.

Two key items I’m familiar with is a 5% cap on late fees and several procedural changes regarding evictions.

Are they just checking for habitable code requirements or are they nailing you for water service upgrades, meter separation, and not having permits on the work?

@Anuja Agrawal@Taylor L. hit the nail on the head.

@Melissa Nash, for added reference, our 700k 3/2 managed homes in Northern PS are doing 90-110k after TOT is paid (post-covid).Believe Collin nailed it on the head, though: PMs aren't worth it until they make it worth it (when they put more money in your pocket AND give you back your time). 

@William Kim Keep in mind that Palm Springs has a cap on the number of bookings you can have per year.

There are stipulations of course unique to the state (like how much you can charge and the cap on late fees). 

-stone, masonry, framing, drywall, nails, sheathing, cladding, roofing-wall & floor tile-windows-doors-fixtures-finishes (counters, cabinets, trim, paint, etc.)So far, it feels like we're paying retail for everything, apart from the 5% discount at Lowes etc.

@Rick PozosRick hit the nail on the head!!!

You absolutely hit the nail on the head.