Quote from @Collin Hays: The real purpose of this thread was to increase my post count.  

So our equity in the note has increased from $650,000 to $700,000.and we collected $156,000 in cash differential during the last two years

We have a 10 year time horizon so we're OK with relying on appreciation, rent increases, mortgage reduction to improve our net return.    10 year projections look very persuasive.    

And/or property taxes & insurance will increase to soak up the difference.

Im a newbie, for what its worth, take the tenant, increase the rent when allowed to do legally.

I believe there were some laws that were changed during Covid regarding the type of workers that need to work at these facilities which increased operating cost significantly.

Expenses also increasing including insurance costs.

But I actually wonder if these programs go away, after the initial pain, the long term result is likely to be positive - a great increase in the number of 2-parent households.

In Jan/Feb 2028 I plan to replace flooring and update the kitchen cabinets and counter top.https://www.smokymountainviews.com/shell-mountain-cabin-orp5...Yeah, I’m basically adding $125K in value for about $100K spent, plus it should increase my rent.  

This does validate why thorough background screening is an absolute necessity.As the state of WA pushes out more restrictive regulations on housing it increases the risk to both tenants and providers.