The days of banking on vacancy-based resets or buyouts as your core strategy are gone.The deals that still “pencil” tend to look like this:You underwrite long-term stable yield, not big upside.You assume minimal rent increases (or none).You price in legal/operational friction.You negotiate hard because sellers are fatigued and there are fewer buyers willing to take these on now.You diligence each tenant’s regulatory profile—not just lease terms, but age, household makeup, income certifications, and historical registrations.If you go into this expecting returns of 10%+, it will look terrible.

I will also caveat my response by saying I am a relatively conservative investor with strong household W2 income and a high savings rate.I would want to hold on to the current loan on the small house and not refinance it for two reasons.

Yes, i target neighborhoods by household income level, and age of home.

CAGR MHI is median household income growth.

Very good guys right on target and so true.. the other one I encountered as a Broker was the Hubby who wanted to look at the property without the wife and tell you he makes all the decisions for the household..

Household furniture must be positioned and/or elevated to allow adequate air flow underneath and between furnishings and adjacent walls.

.), not even a 0% mortgage rate would make the median-priced home affordable for the median-income household, once you factor in taxes, insurance, maintenance, and other costs.

The STR tax strategy is most beneficial for high-income earners (think: $300K+ annual household income). 

According to recent Fannie Mae calculations,it will take one of three things, or a combination of them to get back to affordable housing in America:Housing prices would need to drop 38%Median household income would need to rise 60%Mortgage rates would need to fall to 2.35%This widening gap is why creative investing strategies are becoming more important than ever.

Insurance costs, property taxes, and inflation are eating into household budgets.