Assuming this property is Class C or D, you might also want to investigate incentives to attract Class B or C fringe tenants that would be okay living in a neighborhood they might usually avoid.Think your way through this instead of panicking!

@Daniel Lynch So the girlfriend wants free rent plus all the fringe benefits?

Neighborhood is on outer fringe of seattle so not walkable to any amenities,  but still good commute options to lots of places.One thing to consider though-  Seattle has very punitive/strict tenant protection laws -  and given our recent city council elections which appear to have moved the council FARTHER left (if that was even possible...) 

Skilled and educated working Americans had jobs providing numerous fringe benefits, paid vacations and pensions.

Look on the fringes of the good stuff. 

The tenant had a new born and saw a spider...

If you do go with a portfolio loan, try to have it fully amortize.One of the reasons, at least in Kansas City that many are very very careful about buying in the C and D class neighborhoods because at the same time all of this was happening in our urban core in the Great Recession, those with BRRRR in A, B, and fringe areas, they were for the most part able to sell because prices were not so over inflated and the properties were easier to rent and keep rented because they were in better areas.

So if they're happy with 6% cash on cash and being in the fringe areas where there is a lot more risk, then I guess you should keep feeding them what they want.

- but to me that seems like a fringe case / very tiny portion of the market.Most of the institutional buying was in 2020 and 2021.

Tenants can be broken up into mom and pop (single and multi-unit operator), small franchisee (single and multi-unit operator),large franchisee (typically 50 units or more, regional corporate brands( investment grade or private credit non-rated), national brands (investment grade or private credit non-rated).Outer retail center locations on the fringes made up of mainly mom and pop tenants can get crushed because those types of tenants have few reserves and need the money and profits each month to thrive.