Sure there could eventually be a decrease in home prices if rates increase, but that will certainly be felt stronger in expensive markets - much less so for reasonable markets.

Las Vegas has done great with water conservation, decreasing water usage even with a growing population.

Either way, cash flow decreases.

In order for deals to pencil out, we either need to see a decrease in rates (which seems further out rather than sooner) or a decrease in asking prices.

If there is a deep recession/depression where the unemployment rate rises substantially, and demand decreases, resulting in much lower annual rents, then look out below.

> Any sense at how much rents would decrease if we don't "cabinify" the units?

As others said, you chose to finance over 15 years which increases your debt service and further decreases cash flow.

Multi-family only outperforms in B areas or better, unless you are local or heavily involved thus finding ways to control more factors.SFRs average out to have longer tenancies, which decrease your largest expense - vacancy (and turnover repairs).

Other than depreciation being a noncash deduction, you really don't want to be losing anything...Real estate investing isn't about decreasing your W2 income as its about INVESTING and generating wealth over time or generating cash flow.

Typically you will see an increase in leverage & decrease in rates after you can show 3 completed rehab projects.