High cash flowing rental, especially since I refinanced during the low rate environment into a 15-yr, 2% mortgage.

Chief among them is the soaring price of property insurance within the New Orleans market and the second obstacle is the city's political environment that does not favor STRs.

Hate for them to stay in an environment they are not happy with or any other issues?

(They concentrate/force the equity into their class B shares 13/18 million so they get 72% of the future capital appreciation at the higher 30% cut, versus 5/18mil at the lower 20% rate) They also seem to be overpaying in this downward trending multi-family environment.

With its strategic location, robust infrastructure, and thriving business environment, the region presents an attractive proposition for investors looking to capitalize on its potential.

“More inventory is always welcomed in the current environment,” Yun says.

There are obvious reasons such as affordability, taxes, landlord tenant laws, high paying jobs, and over all political environment.

There are a lot of variables to take into account and a pro will know how to give you the best estimate of what the home will rent for, especially in different kinds of market environments. 

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

Cap rates seem pretty low relative to mortgage interest rates.Has anyone seen this model work in this economic environment?