A conservative 10% cap rate after targeted CapEx of 10% of the purchase price with an equity bump of around 15% on a theoretical resale.  Not the glory days of yore….

But this is the new reality of Midwest home buying, and this, after a long, difficult search. It’s better than a T-Bill.  If business loans are 7.25%, the margins are too thin, so just use cash.

If the 10-Year went up to 9% corresponding to 12% loan rates, that might shake landlords in the Midwest, but I don’t see it yet.  We need more rate hikes to loosen up the finish.