Your yearly ROI would be worse and worse each year and may impact the ability to maintain the property when you face a large CapEx.

The capitalization rate of an investment can be calculated by dividing the property's net operating income (NOI) by the current market value or acquisition cost of a property - expressed in the following formula: Cap Rate = Net Operating Income / Current Market Value " Chicago Cap Rate Analysis Please keep in mind this is a high level analysis.It should give you a ballpark idea of cap rates in the various Chicago neighborhoods.But some assumptions were made for this analysis.For example, to determine the net income for a property, I assumed it would be 50% of the Gross Rental Income.

Luxury Yacht (with decent expendable income) who owns a 3 year old SFH he rents out at market rate in a class B area to stable renters may make a different decision on what to do with monthly cash inflow than Just starting out on a shoestring and a prayer blue coller worker who owns a 70 year old class C that is overdue for a rehab.That is based on personal ability to meet costs when they come due and the probability that costs will come due.That being said, it's always intelligent to budget for CAPEX using real life numbers vs IRS or guesstimate numbers.You also need money for turns, which includes carrying costs when unoccupied and etc...As well as unexpected costs, such as roof damage, or early appliance failure--such as a refrigerator.Good Luck!

HELOCs also very often have the ability of the lender to shut them down at their option.

Let's take another angle, say your credit debt was relatively low compared to your ability to create cash flow from an investment.  

Until then the baseline for LTV calculations is the purchase price ($100K), so no ability to refinance out cash* For residential (my name / fannie mae, freddie mac lending), before 6 months they can re-appraise, but the loan can't be a "cash-out", the max loan amount is the financing basis - so if the title work said the 1st lien was $90K, that is max loan, if $140K then that is the max amount

Keep in mind that HOA’s can completely change the rules and impact your ability to make money with your unit, plus assess you as a member of the class for things totally unrelated to your unit.  

It's really hard to determine which buyers will ask for credits down the road, so you won't know which offers to "exclude."

Understanding the underlying reason it went up is critical to determining if it will keep going up or drop.

Our agents work directly with our leasing team to get rental comps.It’s a complex process and takes multiple departments and a ton of business systems.We are not a turn key provider but we have the ability to provide turn key services if that is what a client wants.Happy to answer any specific questions on our process.