STNL about 5 to 6% cash on cash best case and IRR 10% plus.Now there can be value add retail where stabilized cash on cash and cap rate can be much higher but just like development this is more high risk and much more active role and investment.

Los Osos seems to hold some promise as they have recently installed a sewer system and are making progress towards potential development.

Its walking distance from a part of town that is being heavily developed with new restaurants hotels and big office/warehouse buildings so I see really good potential.

You also noted several key-words that press in the vein of a developing market area.

The longer the better as it gives you more time to line up another tenant if they give notice they are vacating or they want a rent reduction and you have other tenants wanting the space at market rent.Just remember to have a (developers mind) and not place a tenant fast but under the RIGHT terms for you.

I acted a both the realtor and renovator/developer on this deal

Would it change if this were a single family flip or a large scale development?

It depends on what you paid for the land, what you could sell it for, what it costs to develop, how long it takes to develop and sell off lots.

As you connect with sponsors that resonate with you, take the time to develop a relationship with them.

Lucie)Goal: An “easy” acquisition (or a few) with the priority being stable long-term cash flowTarget Cap Rate: 7% or higherLoans: Target LTV of ~65% (this is flexible) This team is looking for stable, reliable investments where they can park their cash for 10+ years without worrying too much about managing or developing the property.