We see deals in Central Ohio, Western Pa and throughout the South which are substantially below value due to recent economic hardships which are likely to dissipate in the future.

I think I could/should go higher, but with all the economic uncertainty, I'd fell better waiting until I see where this may be going.Did you notice any drop-off in rentals that you think came from the price increases?

The only downside would be if the bank suddenly decided they aren't doing these anymore due to economic conditions or some other unforeseen circumstance. 

While many of you have been wondering about the future of interest rates and the economic climate, it seems a very overlooked area is diversification.

UsatyLos Angeles County Housing Report: Housing Haunted by the FedOctober 31, 2022As the Federal Reserve pushed harder and harder on the economic brake pedal by increasing the Fed Funds Rate at thethe fastest pace in recent history, the housing market has slowed to a crawl.Housing Reset In June, the Federal Reserve announced that they had plans to “reset” the U.S. housing market, and that is precisely what is occurring today.

What would the economics look like from your end?

I know I'm starting to sound like a sales guy, I swear I don't work for them, lol, I just appreciate the fact that they're a useful (and economical) tool for marking a bad tenants credit to help future landlords in the screening process.https://www.rentrecoveryservice.com/flat-fee-based...

Besides his regular job he still tutors about ten hours a week plus he is in an online master's degree program in economics through John Hopkins.

@Tyion Bridgeman,This may not be a good deal based on the info you've provided.Here is a quick math:Net rental income = $1.9M * 0.88 = $1.672M - assuming 12% economic lossExpenses at $4500/unit = $1.062MNOI = $1.672M - $1.062M = $610000Value at 8% cap = $7.625M - far cry from $9.4MYou may change the cap rate an expense assumptions to see if you arrive to a different valuationNick

The rule is a bit skewed in the current economic environment because interest rates are so low that it changes cash flow significantly compared to the normal 6-7% rates.