They are very dialed in, raising capital per community, and then cash out refinancing and returning capital.We had considered this model for a portion of a development we are working on, but zoning only allows 20% of the site to be attached doubles and I don't know if I want to try to convince them otherwise. 

@Anita Kollory as far as returns, it all depends on what type of loan you'd be getting, your comfort level of buying locations, how much you're approved of, and several other factors.

I would pick the prime location with the lower returns.  

. - Closing costs are likely to be higher- DSCR loans cannot be used for distressed properties; it looks like you have the order reversed; you will need to rehab the property first, then get a DSCR loan afterFinally, the returns in rental real estate are not solely from the monthly cashflow.

The returns are super aggressive in an economy where people are getting used to renting bedrooms in homes.

Cap Rates & Returns • Class B/C multifamily typically trades ~4.9–5.4% cap rates, which is competitive for steady cash flow. • Operators like Morgan Properties just made a $500M+ Midwest acquisition, betting on Indy’s supply/demand imbalance. 

And, if a higher return is offered with moderate risk, don't believe it.

I'm currently based in Yokosuka, Japan, serving at CFAY (Commander, Fleet Activities Yokosuka) in the US Navy, but I'm planning to return to the US to expand my real estate journey.

Most of my colleagues want to talk about curb appeal and school ratings, while my investor clients are asking me about cap rates, cash-on-cash return, and BRRRR strategies.

It’s strategy, systems, and compliance — all things anyone on this platform can learn to do.Let’s Talk StrategyIf you’ve ever thought:“I want higher returns without high risk,” or“I’d like to invest with purpose, not just profit,”then conversion-based investing might be your lane.I’d love to open a discussion here —Have any of you explored shared housing, senior living, or co-living models yet?