You’re right that entry prices on newer homes are reasonable and rents are strong enough to justify purchases in a lot of cases.On vacancy: yes, there is a fair amount of inventory, particularly in the newer Class A garden-style apartments north of 1604.

There are also some tailwinds in MF now--despite the headwinds of a supply overhang in certain markets, and stress on the Class B and Class C demographics re: consumer confidence.Basically the opposite of what I did in 2020 when I got involved with a couple of sponsors who are out to sea with no wind.

They did not perform nearly as well in reality as they did on the spreadsheet, and I noticed quickly that they were surprisingly being outperformed by my Class A rentals that I kind of ended up with by accident (former primaries and a couple SFR’s that I picked up from a friend at a great price).

One thing I'd add: before picking your market, run the numbers on 3-4 properties in each area using the 1% rule as a starting filter.

If you target Class C, you better be prepared emotionally & financially for plenty of challenges.You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:Many of them don't know/care what Class the properties are, so they're incompetent.Others know exactly what they are doing, so should be labeled as crooks!

The pick caught markets off guard given Warsh’s reputation as a relative inflation hawk and a long‑standing critic of balance‑sheet expansion and ultra‑easy money.

Vacancy depends on the asset class. 

You don't have to pick one or the other.

One thing I'd add - A-class might rent slower but tenants stay way longer.

D class cash-flow NEEDS to be there, day 1.