The first part of this may have recently changed (someone indicated it had changed but I have not verified it.10) Small number of small units is the most expensive residential development there is.

For anyone that is looking at developing or purchasing an STR in Packwood, WA I would take a peek at the numbers that are on the rental sites and the amount of bookings. 

@Ke Nan Wang - I would love more info on your development!  

These often include ground-up development, major redevelopments, or distressed assets.Key characteristics:Development or heavy repositioningHigh capital requirementsMarket and execution riskCyclical exposureExamples:Ground-up mixed-use development in an emerging tech corridorDistressed hotel acquisition in a recovering marketOffice or retail conversion into multifamily housingWhy investors use opportunistic:These deals aim for outsized capital appreciation and are typically reserved for a smaller portion of the portfolio due to volatility and complexity.REITs & Private Equity Funds (Liquidity & Diversification)Beyond direct ownership, many investors allocate capital to REITs and private equity real estate funds.REITsPublicly tradedHigh liquidityProfessional managementRegular income distributionsExample:Shares in an industrial-focused public REITPrivate Equity Real Estate FundsPooled capitalOften focused on value-add or opportunistic dealsLonger lock-up periodsHigher return targetsExample:A private equity fund targeting value-add multifamily assetsWhy investors use them:These vehicles provide diversification, passive exposure, and professional management, complementing direct property ownership.Final ThoughtsA well-structured commercial real estate portfolio isn’t about chasing the highest returns—it’s about intentional capital allocation.By combining:Core for stabilityCore-plus for measured growthValue-add for forced appreciationOpportunistic for upsideREITs and funds for liquidity and diversification…investors can build portfolios that perform across market cycles while aligning with long-term goals.The most successful investors don’t avoid risk—they manage it strategically.

I have Vintage as well, unfortunately this exact pocket was over developed and may be under stress of low demand.

Carillon Parc development changes tabled, 2 other items from Southlake Dec. 2 meeting | Community Impact

@Jose Blanco The "unicorn" loan requires the borrower to put down 50% + pay closing costs and your assignment fee.....also no sensible buyer is relying on the seller prepared appraisal when purchasing a $1.5M piece of real estate but pretty sure you will lose buyers at "Bass Pro Shop development expected to drive major tourism". 

When compared to markets like Los Angeles, Massachusetts offers a compelling alternative: LA multifamily development has sharply declined, with fewer than 19,000 units under construction—a 30% drop in just three years—despite high rents and low vacancy rates.Local policies, like Measure ULA, impose steep transfer taxes on sales over $5M, deterring lenders and developers.Proposed labor regulations, including minimum wage hikes for construction workers, are adding further uncertainty and risk.Many developers are redirecting projects and capital elsewhere, leaving fewer high-quality investment opportunities.  

For a bit of context, I’m a Los Angeles–based agent and investor, and I also work on small development and value-add projects locally.

Finally, if you are thinking of purchasing out of state, especially in Milwaukee you will need to develop a team(Boots on the ground).Many people want to jump out there without building proper foundation.