Here's how I do my due diligence:1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where I think we are in the real estate cycles (financial and physical market cycles)b) Then and only then do I pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.

I believe that starts with where in the project life cycle the investment is made.

But for tenant-occupied properties with first-of-the-month rent cycles, it’s generally best to target a closing somewhere around the 6th–25th.

I self-manage but I did have a daughter who was in school there so I could understand the leasing cycles and I was given the previous owners leases to start . Definitely try to understand if it’s rented as a student rental now on the academic year schedule.  many times they say they are student rental because they’re close to the university, but they’re not on the academic year schedule .Ours are all one year leases, but all have to move out a couple days early so we can do the turnover.  Go and call around to other landlords in the area or property management companies and get copies of leases and act as a renter and trying to understand what the requirements are and their best practices.  in our area, it is common to pre-lease 9 to 10 months in advance before the academic year begins and for tenants to pay every utility including water .

Scope of improvements included:Full interior updates: new flooring, interior paint, lighting, granite countertops, and updated appliancesAddition of high-demand short-term rental amenities: game rooms, custom bunk beds, hot tubs, swimming pools, and putting greensProfessional interior design and full furnishing to optimize guest experience and nightly ratesThese improvements were executed with the objective of maximizing long-term performance, increasing appraised value, and creating differentiated offerings within the Hot Springs vacation rental market.Refinance & Financial PerformanceUpon completion of renovations, we partnered with a local commercial lender to refinance the portfolio.Combined appraised value (ARV): $2,601,000Approved loan amount: $2,200,000 (cash-out refinance)After retiring the hard money loan, the transaction resulted in a net cash return of $300,470.51, which represents $118,181.09 more than our original down payment—effectively removing all invested capital from the project.TimelineThe full cycle—from acquisition through renovation and refinance—was completed in 174 days.OutcomeThe result is a portfolio of three fully renovated, amenity-rich lakefront properties, each now positioned to perform as premium short-term rentals with strong long-term appreciation potential.

If the city keeps producing visible results from the last allocation, the cycle strengthens: investment → results → reinvestment.Inventory is down to 3,533 active listings.The 30-year mortgage rate is sitting at 6.18%.

Buyer traffic and current sales improved, and future sales expectations stayed above 50 for the second straight month.Why this matters: Builders are early-cycle indicators.

There is a 10 year cattle price cycle.  

Tankless units hate inconsistent, on/off demandYour exact use-case, slop sink, occasional washups, random tenant usage, is where electric tankless performs the worst:Rapid cycling burns out the heating elementsSlop sinks often have low flow, and tankless units won’t even turn on under ~0.5–0.7 GPMFlow rate varies a lot with industrial faucets, and tenants twist knobs fastYou end up with “lukewarm water” complaints or units that won’t fire consistently.3.

Poverty is viscious cycle.