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I partly disagree with using expected holding period as the main comparison. People often move or refinance later than planned, so a short five- or seven-year model can make a fee-heavy loan look better than it is. I’d calculate at least three exit dates and include a full-term case. That shows...

I’d put the decision into three columns: expected year, empty/turnover year, and repair-plus-vacancy year. In each, show rent actually collected, management, routine maintenance, insurance, property tax and the larger reserve. Then add financing only after the property-level cash flow is...