Many loans often made in difficult areas often with crime and poverty presentFloating rate bridge debt is basically the same:1.

Cap rate based on actuals?

Cap rate.  

As difficult as it is to identify permissible STRs in 2025 - the likelihood is that many of the zones and homes that currently qualify - might not in the near future.

So from one side the argument could be made that this move is just to give the jv partner his liquidity and new investors end up holding an asset that (while cash flowing) may be difficult to exit.

Cap rates:  Cap rates have been expanding, but sellers think they will tighten. 

Tom Lee is right, maybe this is the year he'll be right on small caps though, and rate cuts will be a tailwind for that segment. 

In addition before the summer of 2025 there was not a cap on number of ADUs that could be added.

If not, you will have a difficult time finding a lender to finance the acquisition.

In our market today it's getting increasingly difficult to stay busy.