“What’s your absolute deal breaker — cap rate, condition, or neighborhood?”

In Metro Vancouver area, the cap rate is low.

If a deal doesn't work with no appreciation and rates staying elevated, I'm not writing the check.My personal minimums: 8-10% cap rate on stabilized rentals, cash-on-cash return of at least 12% year one, and enough spread that a 10% property cost increase doesn't kill the deal.

Stabilized asset with 100% occupancy, 8.97% going‑in cap rate, separately metered utilities, and major CapEx completed by prior ownership.

Most lenders will have a cap at 400 sqft minimum.

With the tenant paying near the low end of average rent in the area along with proper cushion for maintenance, cap ex, vacancy, etc.

Here is an example of a deal I looked at the other day that I feel like it SHOULD have worked out:Purchase Price: $150,000Down Payment: $37,500 (standard DSCR 30-year fixed rate)Loan Amount: $112,500Closing Costs: $4,500 (estimated 3% purchase price)Rehab Costs: $50,000ARV: $230,000Total Cash Investment: $92,000Property Taxes: $1,759/yrInsurance: $2,000/yr (estimated)Monthly Payment: $748.47Gross Rent: $1600/moVacancy Loss: $96/mo (6%)Property Management: $166.67/mo (8%)Repairs & Maintenance: $128/mo (6%)Cap Ex: $48/mo (3%)NOI: $935.07/mo (Rental Income less Vacancy and Monthly Expenses, Taxes & Insurance)Debt Service: $748.47/moCash Flow: $186.60/moCOC Return: 2.43%I have been shooting for a COC Return of at least 8% and just can’t seem to get the numbers to work.  

Maybe others would have more helpful input on this aspect — but I've always held off on STR since a turnover team seems like a difficult thing to put together. 

Navy Federal's 41% hard cap is the problem, not your profile.

Love the house hacking strategy: minimizing housing expenses in this market is always a great to stash away cash for the next deal.Self-sufficiency test is difficult to overcome in our market.