.: The size doesnt justify going with a manual cost seg study with a vendor like ETS or so which would cost us over 5k.

This is my first property and even though I planned to hold on to it, the rising HOA fees makes it hard for me to justify holding onto it.

In your experience, was the study pricing justified for how much tax savings you got?

If the answer is no, the deal needs to be exceptional to justify the headache.

Basically anything that can justify a rent increase.

I have yet to see an underwriting of unleveraged RE without a value add that can justify the effort and risk of RE.Leverage is what makes RE lucrative to hold.  

Cliff, how would someone know if their portfolio is big enough to justify?

If you’re already built for ops, it’s hard to justify thinner, capped yields.For smaller investors, I think performing notes are still viable only if:• You have scale or shared servicing• You’re buying at real discounts, not spreadsheet yields• You understand exit risk, not just coupon rateNet-net: not a dying niche, but no longer beginner-friendly or passive in practice.

.• Owners being more intentional about rent increases (steady, smaller adjustments vs big jumps every few years)• Investing in unit quality so higher rents are actually justified• Cities encouraging more housing supply (especially workforce housing)• And better screening, longer-term tenant retention to reduce turnover costsOne thing I’ll add from the property management side: rising rents also mean rising expectations.

In both cases the risk rarely justifies the upside.