The sweet spot is in the middle.Here’s the framework I use when coaching new investors:1.

But overall, your framework is the blueprint when your systems are tight, scaling really does start to feel boring in the best way. 

Either the cap rate is higher, or the NOI is less reliable, or both.So your valuation math is right, but the 7.3 percent cap rate might not be the right input for this exact building.3) Your DSCR back into price is also mostly right, but make sure you are using lender NOIYour logic is:Max debt service = NOI ÷ DSCRConvert that payment into a loan amount using rate and amortizationConvert loan amount into price using LTVThat framework is fine.But lenders often underwrite DSCR using their own NOI version.

All very helpful comments and a great framework.

@Jason Malabute provided a great framework for what you should be asking. 

Horror Stories from those that did NOT Understand What they were Buying:https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-painhttps://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-losshttps://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costshttps://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-yearsThanks, Drew — I really appreciate the detailed breakdown and the framework connecting property class, tenant pool, and expected outcomes.

Add to that a progressive income tax framework that steps down as the state hits defined financial benchmarks — with a clear path toward zero over time — and the long-term math starts to look very different for operators and investors.Layer in financing conditions, too.

It sounds less like relying on “one funnel” and more like having a repeatable framework that lets you evaluate opportunity wherever it shows up.Out of curiosity, with that many acquisition channels in play, what’s been the biggest limiter lately — volume of qualified leads, time to properly underwrite, or just filtering signal from noise?

@Margot BaldwinThey may be at a stage of their business where they are only working with larger/more established investors/businesses.You can still get some value even if you don't use them for the tax return.They can provide you the framework of additional items that may be deductible that you didn't think about before.Amanda Han, a partner at Keystone, wrote a tax book for real estate investors a couple years ago. 

I don’t disagree with the math, and I think your framework is directionally correct when the goal is maximizing returns on deployed capital.Where I think we may be talking past each other is that I’m not making the case that unleveraged real estate outperforms the S&P on a pure return basis.