Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

Single-family homes benefit from a larger buyer pool, appealing to families and owner-occupants, which makes them easier to sell.

AHP claimed their lender just took their notes and sold or reallocated them for their own benefit.

I shifted from investing with a cash flow focus to the appreciation and tax benefits side of things.

I don’t think you’re getting $2k worth of benefit, much less $16k every single year. 

The benefit of a permit and inspections is to have an independent party verify work. 

People still sleep on the area and it is very close to Nor CA but has a lot of different benefits with similar appreciation. 

It also has the benefit of being local which is great training wheels as you learn how to be a killer host.Now assuming that you mostly want a cool property to stay in sometimes near water and don't want to spend a ton of time managing I really like the outer banks in NC.

Without house hacking, your figures would look like this:$1850+1850 = $3700 - $1500 - $3200 = $-1000 net in your pocket (let's skip principal paydown and tax benefits for now).With house hacking, your figures would look like this:$1850+650+1500 = $4000 - $3200 = $800 net in your pocket. 

Alternatively, do the risks outweigh the benefits of $500+ cashflow plus 30% day one equity and less than 2k out of pocket?