Would We Ever Spend money on Tenant-Pleasant States?

Dave:
Is investing in a tenant-friendly state a deal breaker or are buyers who keep away from them leaving cash on the desk? Landlord-tenant legal guidelines range dramatically throughout the nation. Eviction timelines can vary from just a few weeks to over a 12 months. Hire management can cap your cashflow and allow restrictions can decelerate your rehabs or cease them utterly. However there’s additionally a flip facet. The states with the strictest legal guidelines are sometimes essentially the most fascinating locations to reside. They’ve robust demand, robust lease development, and powerful appreciation. So right now we’re breaking it down. What makes a state landlord or tenant pleasant? Which states are one of the best for buyers? And what are you able to do to guard your portfolio for those who’re already investing in a tenant-friendly state? For those who personal leases otherwise you’re about to purchase your first one, this episode may prevent some huge cash and stop a number of stress.
What’s up everybody? I’m Dave Meyer. He’s Henry Washington. We’re the co-hosts of the BiggerPockets Podcast. Henry, how are you? What’s occurring, man?

Henry:
I’m excited to speak about this as a result of I technically reside and spend money on a landlord-friendly state. However each time I have a look at lists of essentially the most landlord-friendly states, my state doesn’t make the checklist. And so I’d prefer to dive into slightly bit about why I feel that is landlord-friendly and why or why not that truly issues.

Dave:
All proper, Henry, what are among the elements that you consider when contemplating whether or not a state or a metropolis is landlord-friendly or tenant-friendly?

Henry:
What involves thoughts for me, and I feel what involves thoughts for lots of buyers after they’re contemplating markets and debating whether or not it’s landlord or tenant-friendly is that they’re fascinated about evictions. So how tough is it going to be to get an issue tenant out of your property?That’s what individuals are usually fearful about or targeted on. However you’re proper, that’s only one issue I feel that makes up whether or not a market is tenant or landlord-friendly. Sure, eviction velocity is vital as a result of when you’ve got a foul non-paying tenant and also you’re in a market that it takes a 12 months to place them out or extra, that’s some huge cash you could possibly be leaving on the desk. I used to be simply speaking with somebody who has a tenant whose lease is $4,000 a month and it takes a 12 months to evict them. They’re within the state of New York.

Dave:
That’s 50 grand.

Henry:
That’s a crap ton of cash.

Dave:
That’s insane. Yeah. So vital variable.

Henry:
Proper. Yeah, completely vital variable. However I feel individuals solely take into consideration this one variable after they’re making an attempt to pick out a market and there are such a lot of others that even when this variable is in your favor out there you select, if a number of of those different variables aren’t, you could possibly nonetheless end up able you don’t wish to be in. So evictions are simply part of the method. You even have completely different guidelines round what sort of discover a landlord is required to present a tenant earlier than the eviction course of begins. So the eviction course of is actually like an official course of, however the eviction course of can’t begin till you will have given the right quantity of discover. And so for those who’re in a state that has brief timelines round giving discover, then that may assist you get to the eviction course of sooner. If it’s important to give a number of discover to individuals, that simply provides to the delays as a result of the eviction course of hasn’t even began but.
You’re simply coping with the discover, which is just like the precursor earlier than the eviction course of begins. After which on prime of that, there’s states which have what they name simply trigger guidelines. Landlords need to have simply trigger to place a tenant out primarily. In different phrases, you’ll be able to’t simply go, “Hey, I modified my thoughts and I wish to promote this property so I’m canceling your lease in the course of the lease in sure states.” In some states you’ll be able to. So a few of these simply trigger guidelines can actually put handcuffs round landlords. However in all honesty, I feel simply trigger guidelines are like their tenants ought to have some protections in the event that they’re dwelling in a spot. I feel that’s a very good factor in my view. You shouldn’t simply have the ability to put anyone out for no motive, however it’s one thing that you must take note of. After which I feel the opposite large one individuals take into consideration is lease management.
There are some states the place you’ll be able to solely cost a certain quantity of lease inside regardless of the market rents are. After which as soon as that lease is ready, you then are solely allowed to boost rents by a sure proportion in these markets. And people guidelines can range from state to state.

Dave:
Simply so as to add some kind of information to what Henry was saying, for those who have a look at Texas, Florida, Ohio, Georgia, their discover vary for eviction is simply three days.

Henry:
That’s Arkansas as nicely.

Dave:
That could be slightly brief. To me, I get why they’re. I wouldn’t be fearful personally about investing in the event that they stated it’s important to give two weeks discover.

Henry:
Sure. I feel that there’s some intricacies although. So in a number of these markets the place you may give three day discover, there are conditions the place you’ll be able to and conditions the place you’ll be able to’t. So like in Arkansas, I may give you a three-day pay or give up, however provided that you’ve not paid lease. So for those who’ve not paid lease or violated the lease in some kind, then I may give you a three-day pay or give up after which that offers you three days to both get caught up or then I can begin the eviction course of. However for those who’re paid up and I wish to evict you for another motive, I can’t simply serve you a three-day discover. It’s received to be a 30-day discover.

Dave:
In order that is sensible. That appears considerably affordable

Henry:
To

Dave:
Me. I personally, I reside in Washington State that’s kind of on the opposite finish of the spectrum. I feel the important thing factor right here is like once I talked to James, he owns a number of leases right here. You simply need to underwrite it. He plans for these things, proper?

Henry:
Sure. If

Dave:
You personal a multifamily and also you personal 30 items, you’re in all probability going to have a non-paying tenant sooner or later. So that you simply need to underwrite that into your deal, which is why I wouldn’t give it some thought a lot simply put together for it. It wouldn’t be a deal breaker for me. It might solely be a deal breaker for me if I underwrote it with a better emptiness. It’s primarily simply one other type of emptiness, proper?

Henry:
Appropriate.

Dave:
So it doesn’t work with that larger emptiness charge. Then I simply wouldn’t purchase the deal, however I wouldn’t write off a complete market due to this personally.

Henry:
I principally purchase singles and small multifamily. So if I’m underwriting a deal and it’s in a market the place timelines are longer to evict a tenant, I’m going to organize for the worst case situation as a result of as an actual property investor, a number of the occasions we’re getting good offers as a result of a present proprietor desires to get out of a headache. So they could know, yeah, I received an issue tenant in right here. That’s why I’m promoting you this property. You go cope with it. That’s a very good level. And I’m going to present it to you at a reduction. So that you underwrite it so that you simply put together. If it’s going to take you a 12 months, nicely, how a lot is lease? What number of months are in a 12 months? Add that up. Add it into your underwriting so as to deal with it when the scenario comes, like plan for the worst case situation in your underwriting.
Then for those who get it dealt with in simply a few months via another means, nice. That’s extra cashflow, extra return in your funding for you.

Dave:
I’ll simply say if you’re involved about eviction timeline, there may be large variations in right here. I kind of labored with AI right here to kind these states into buckets and what you see is there are states the place the discover interval is three days, complete timeline to evictions like three to 6 weeks. And people are among the states I discussed, Texas, Florida, Ohio, Georgia, Mississippi, Arkansas, Iowa. It’s quite a bit within the Southeast and the mountain west. Then on the entire different finish of the spectrum, there are a pair states which are simply very sluggish. It may take as much as six months in states like New York, New Jersey, California, Connecticut, Rhode Island, Vermont, Hawaii. All the pieces else is type of within the center. It’s such as you’re someplace between 4 to eight weeks. Most states are type of in that vary. So if you’re inquisitive about this to your personal market or markets that you simply’re going into, verify this out as a result of I feel that’s the important thing to what Henry and I are saying is like for those who go into it eyes large open realizing what the method is, you’ll be able to mitigate that threat.
However this can be a appreciable situation for sure individuals. And for those who simply need, for instance, for those who’re a turnkey investor and also you don’t wish to get into among the hairier elements of property administration, you may wish to go together with a few of these states which have a quicker processing time.

Henry:
And while you have a look at that checklist, a number of these markets which are extra tenant-friendly markets are additionally markets the place you get much more appreciation the place there’s extra demand. Folks wish to reside in New York and so they wish to reside in California and coastal areas and there’s a number of type of a, what’s James name it, juice. There’s a number of juice.

Dave:
Yeah, it’s received quite a bit

Henry:
Of juice. You bought a number of juice in these since you get a number of appreciation. And like actual true wealth is constructed via debt paydown and appreciation. So if I’m fascinated about investing in a kind of markets, sure, I wish to underwrite the deal appropriately in order that I can afford to deal with no matter tenant scenario I could also be strolling into, however that isn’t the entire tenant conditions that you’ll have to cope with. Yo can also put your individual tenant in there after you deal with a foul tenant and that tenant doesn’t end up nicely. After which you could possibly go a complete nother 12 months the place you’re not getting lease. And so it’s not simply planning for the tenant scenario you’re coping with while you purchase it, nevertheless it’s planning like, how do I function this?

Dave:
One of many correlations you see is in a number of the states the place they’re quote unquote tenant pleasant, additionally they have a number of provide constraints. They don’t permit growth. For those who have a look at cities like Seattle, it’s very exhausting to develop or San Francisco or New York, or there’s simply not sufficient room in a number of these locations to develop stuff and that pushes costs up. So it’s simply, once more, all of these items are trade-offs. There are two different regulatory issues I wish to discuss, which is lease management. And one other one which I don’t hear individuals speaking about, which is rental licensing, however we received to take a fast break. We’ll be proper again
Welcome again to the BiggerPockets Podcast. Henry and I are right here speaking about one of the best and worst landlord states. Folks all the time ask me about this. Is that this state landlord pleasant? Is it not? I feel as we’re discussing this, we’re seeing it’s not so black and white. There are rules that that you must perceive and mitigate, nevertheless it’s all about discovering the regulatory and return surroundings that’s snug for you as a result of regulation and returns don’t all the time match. The markets with the strongest rules don’t essentially have the worst returns. Generally you see fairly the other. So we’re breaking down particular person points that can assist you perceive what markets may align greatest along with your technique. Earlier than the break, we talked about kind of just like the dangerous tenant mitigation scenario, however I wish to speak lease management and I’ll simply say I’m not a fan of lease management. I feel there are virtually no points that each single economist I’ve ever learn hates, however lease management is one in all them.
It’s fairly robust to discover a single educational examine that helps the thought of lease management. The truth is, most research present that it will increase lease. I’m not going to get into absolutely into this, however there’s been many research that present that lease management decreases the availability of rental properties, which implies there’s much less rental items on the market and extra individuals are competing for fewer rental items. And though it could lower or maintain lease regular within the brief run, long run, and there have been many, many research of this, it reveals that it pushes up rents. So for me, lease management not solely impacts you as a enterprise proprietor and the flexibleness that I feel it is best to have the ability to need to have pricing in your items, nevertheless it doesn’t even assist the people who was supposed to assist. Why is there lease management? It’s a complete different matter.
It’s clearly simply politically expedient for individuals. They like the thought of it, nevertheless it’s simple to promote the thought of it, nevertheless it doesn’t work.

Henry:
Yeah, that’s what it’s.

Dave:
And so I simply don’t prefer it. I might be hesitant to spend money on locations with lease management personally.

Henry:
Folks prefer it as a result of politically it’s a option to get you some votes shortly as a result of what individuals hear is that if I’m a renter, lease’s going to be cheaper. So I’ll vote for that. They don’t actually perceive the impression of what it’s that they’re voting for. And don’t get me flawed, I feel rents needs to be reasonably priced. I feel landlords have a task to play in ensuring that rents are reasonably priced. I additionally suppose states, native authorities and the federal authorities have a task to play in ensuring that rents are reasonably priced. I simply don’t suppose lease management is the answer.

Dave:
I agree that I’m not advocating for maximizing lease in each situation. The truth is, I feel we’ve talked about a number of occasions that I feel elevating rents modestly is definitely a very good win-win enterprise technique in lots of, many eventualities. The explanation once we’re speaking about landlord friendliness, tenant friendliness that I might be hesitant to spend money on one in all these markets is one, a number of occasions what lease management incentivizes landlords to do is elevate rents greater than they should after they have turnover as a result of a number of the legal guidelines are you can’t elevate lease on an current tenant, but when there’s turnover, you’ll be able to elevate rents. And so what the research present is that landlords then go above market charge as a result of they know if that tenant goes to remain in that unit, they should mitigate the chance of not having the ability to sustain with bills.
And they also need to go above market charge, which is simply worse for the tenant. And so this can be a motive I don’t wish to be put able the place I’ve to be fascinated about that. The opposite factor is like lease management doesn’t work. Anybody who’s intellectually sincere and appears into it could see that it doesn’t work. And so investing in a spot the place politicians are doing that simply to get votes doesn’t bode nicely in my view for what the regulatory surroundings’s going to be for actual property buyers usually. And so these are the the reason why I might take into account lease management fairly severely in your evaluation.

Henry:
And as I used to be researching for this episode nearly lease regulation and the place these items are occurring, what I discovered was that the Nationwide Residence Affiliation was monitoring round 172 lease management payments. That was again within the spring of 2025 and 131 energetic payments within the fall of 2025. And so these are potential lease management payments which are being checked out. Now, most of them aren’t being handed, however that’s a number of quantity of … That tells me there’s a number of politicians which are lobbying for some kind of lease management. For positive. I’ve heard about lease management since I began investing in actual property and I haven’t seen a number of markets the place it really will get handed, however this analysis reveals me that there’s a lot of markets which are strongly contemplating it a lot in order that they’re drafting payments, despite the fact that they is probably not getting handed.

Dave:
Politicians are reacting to the fact that rents are unaffordable and that’s exhausting, however the answer is to construct extra provide. That’s simply the answer. Sadly, due to the way in which elections work on this nation the place individuals are reelected each two to 4 years and since it takes in all probability 5 to 10 years to successfully construct extra provide, politicians don’t give attention to that. They give attention to lease management. However I digress. Anyway, that is one thing it is best to take into consideration in your evaluation. One different factor I by no means see on these lists, however I’ve encountered in no less than two of the markets I make investments is in rental licensing. Do you will have that?

Henry:
No.

Dave:
That is one thing that exists in Denver, it exists in Michigan in sure locations, however in sure markets now, that you must apply for a license to be a landlord. And the thought, no less than within the two markets I make investments the place I’ve needed to apply for licenses, it’s principally they ship an inspector out to make it possible for the property is secure and so they gather a price, clearly. I’m additionally tremendous with them making it secure, however it’s one other factor that it is best to think about as a result of I’ve had tremendous experiences to date, however similar to with an inspector or an appraiser, you type of don’t know what you’re going to get with a few of these issues. That’s so true. And so I’ve heard from my property supervisor, I had one carried out a pair months in the past and so they had been like, “Man, you bought fortunate. I believed they had been going to let you know to alter all these items, however the property is secure, don’t get me flawed.” However generally you meet a persnickety one who swiftly you purchase a rental property that you simply thought was turnkey and now

Henry:
You’re

Dave:
Investing 10 grand into renovating that property. So that is one thing that has grow to be extra common lately, similar to in a number of locations, short-term leases, you now want a license or it’s important to pay a price.

Henry:
Nicely, I simply wish to make it possible for we outline a few of these phrases for our listeners in order that they don’t get confused. May you give us a definition, possibly a facial features of what persnickety is?

Dave:
I really feel like I simply outed myself as like a 18 to 80s outdated grandpa simply saying persnickety. So I imply, I feel that is one thing to think about while you’re evaluating landlord friendliness as a result of once more, like every little thing, there’s a spectrum. In Denver, for instance, I feel it’s like 200 bucks to get an inspection. You don’t want an inspection yearly, however you do pay an annual price per unit, nevertheless it’s low cost. I feel it’s like 30 bucks a unit. So it’s not onerous. However in Baltimore, in DC, in Philly, in New York, they’ve fairly strict leases. So that is simply one thing to bear in mind. In Seattle, I’m simply taking a look at it, it’s 115 bucks per the primary unit after which $20 per unit after that. So it’s not going to interrupt your financial institution. You need to put it into your underwriting. For me, the chance is extra while you want an inspection, it is best to issue the potential for wanted upgrades into your stabilization price range.
Whenever you’re going out and shopping for one thing, that you must perceive that somebody’s going to return in and let you know that it’s important to do one thing. I’ve not had dangerous experiences personally, however I’m betting within the feedback we’re going to listen to somebody say that they’ve had dangerous experiences on this due to these persnickety individuals on the market. All proper. These are lots of the variables on the regulatory facet that you ought to be fascinated about. Once more, it’s kind of the entire bucket of issues that occur while you sadly need to cope with somebody who’s not paying lease or had violated their lease ultimately. We’ve additionally talked about lease management and rental licensing as nicely, however no less than in my thoughts, the regulatory facet is one half.
The return facet is a complete different factor as a result of similar to every little thing, regulation presents threat and challenges and operations that that you must navigate, however generally it’s value it if the returns are there. So I feel we must always discuss find out how to stability the chance for return versus among the regulatory issues that you simply’re going to wish to navigate. So let’s get into that, however we do received to take yet one more fast break. We’ll be proper again Welcome again to the BiggerPockets Podcast. Henry and I are right here speaking about landlord rules like lease management or rental licensing or how lengthy it could take to evict a non-paying tenant or somebody who has damaged their lease. And we’ve gone via every of these, what they imply, some tips about find out how to navigate these issues. However I feel we must always discuss how a lot this issues and the way to consider, one, for those who’re making an attempt to select a market to spend money on how you ought to be evaluating them, or two, for those who make investments no matter the place you make investments, how you ought to be fascinated about a few of these rules.
As a result of to me, similar to every little thing in actual property, there may be threat and reward, proper? And so you bought to weigh the chance and reward. For instance, not having the ability to evict somebody who’s not paying their lease for six months, that’s a threat. Is it value it in a market with no appreciation and dangerous cashflow? I feel you realize the reply to that.
If that’s in a market that has actually robust fundamentals, possibly it’s value it. So I don’t know. At the least that’s how I give it some thought.

Henry:
I imply, all of it boils right down to threat and reward. And so to begin with, for those who’re making an attempt to select a market, landlord penant friendliness might be additional down the checklist for me when it comes to what I’m contemplating. Completely. I’m first taking a look at how a lot cash I’m making an attempt to make, once I’m making an attempt to make it. Subsequent, I’m taking a look at what technique I wish to try this’s going to get me to these numbers. Third, I’m taking a look at what markets do these methods work in after which I’m going to begin to slender down that checklist of markets. If I’ve like 15 markets that I can do that technique in, I’m going to start out narrowing down these markets nonetheless not by landlord-tenant friendliness but. I’m going to be taking a look at affordability of the market. I’m going to be taking a look at, is it a spot I wish to go go to?
I’m going to be taking a look at, is it a spot I’ve some kind of superpower in? Do I do know individuals? Have I lived there? All of these items come first to me. After which as soon as I get it right down to an inventory of possibly three to 5 locations that I wish to make investments, then I’ll dig into the owner tenant guidelines after which decide how a lot of an impression I feel that will have on me having the ability to get to my monetary objectives. And if it’s means riskier, in different phrases, if the chance is excessive that I’m going to have extra issues which are going to trigger me to not hit my monetary objectives, then I’m not going to decide on that market. But when it’s extra of a good threat to reward ratio, I’d in all probability nonetheless take into account that market. And so I feel individuals give landlord friendliness and tenant friendliness means an excessive amount of consideration.

Dave:
I agree.

Henry:
Sure, it is best to take note of it, however it isn’t even on my prime 5 checklist of issues that I’m targeted on once I’m evaluating a market. Similar. After which landlords, us, that is for us. We all the time wish to discover an excuse for us not having to be good on the one factor we actually should be good at to ensure that us to be good landlords. And that’s tenant choice. Each single landlord, whether or not you’re managing your properties your self otherwise you’re outsourcing it to 3rd celebration, our job is to be excellent at tenant choice. It doesn’t matter for those who’re renting in D class neighborhoods or A category neighborhoods. Simply since you received an A category property doesn’t imply you’re going to get an A category tenant. You possibly can have an F class tenant and an ACAS property occurs on a regular basis. It’s a must to be good at tenant choice and a number of landlords don’t take the time to determine find out how to get good at that.
And we depend on all of those outdoors sources to be good at for us. We wish our property supervisor to be good at it for us. We wish the legal guidelines and native rules to save lots of us once we’re not good at it. And that’s not what they’re there for. That’s

Dave:
Such a very good level. Sure.

Henry:
You might want to give it some thought and account for it, sure. Within the markets the place it’s a rather more tenant-friendly state, sure, that you must underwrite for it. You might want to have the money reserves for when conditions go dangerous. You might want to have the right actual property lawyer that can assist you navigate via any of those conditions. All of these issues are issues that you must have to organize your self. Sure, completely. However the one factor that should occur with a purpose to preserve you out of these conditions is on you. Be higher at choosing tenants.

Dave:
No notes. Initially, that is one thing that occurs generally, sadly. I’ll be sincere, I’ve by no means evicted somebody. I’ve threatened to evict individuals. I’ve needed to file to evict individuals, however I’ve been lucky in having the ability to try this as a result of I’ve gotten good at tenant choice. Now, I’m positive that may change sooner or later. There’s an inevitability to this factor for those who’re on this lengthy sufficient, however I’ll simply say that you’ve got a great deal of management over this. What quote unquote a very good tenant is, can also be subjective. You might want to get good at discovering somebody and placing them in a scenario the place they’ll succeed as a tenant, the place they’ll pay. Meaning not demanding the best quantity of lease and discovering somebody who’s stretching to get into that unit so you may make an additional 15 bucks a month.
That’s not a good suggestion. If you’re in a market, if you’re shopping for A category properties in New York Metropolis and also you’re fearful about tenant legal guidelines, you’re loopy. You don’t want to fret about that. You’re renting it to somebody who in all probability has a really excessive paying job and pays the lease 5 occasions over.That’s not a problem. That’s not one thing you ought to be fascinated about. If you’re shopping for C class property in a really unaffordable market the place individuals are stretching themselves to get into your unit, then it is best to take it slightly bit extra severely. That’s the place you ought to be underwriting these items. However as Henry stated, it’s like fairly low on my checklist. I feel a lot, a lot, rather more in regards to the issues I do know I’m going to come across. What are the rents? What are the taxes? What are the insurance coverage?
That’s stuff that occurs yearly.

Henry:
Each month.

Dave:
Each month, proper?That’s one thing you’re simply all the time coping with. Take into consideration that. Take into consideration your crew. They’re going that can assist you navigate these items far more than the regulation. Try to be fascinated about, do I’ve an amazing property supervisor? Henry talked about a lawyer. When you’ve got nice people who find themselves serving to you display tenants and figuring these items out, you’ll be able to rely much less on the regulation. If you’re simply throwing individuals into items, which I hope you’re not, then you definitely in all probability needs to be fearful about these things. I’m not saying they don’t matter. It does, however I feel Henry’s proper. Is it prime 5 variables I take into consideration? No. Perhaps makes the highest 10, however I’m not even positive it

Henry:
Does.

Dave:
However that stated, I feel that what we’re making an attempt to get throughout right here is it’s about you and what you are promoting mannequin. Like I used to be simply saying, for those who’re shopping for sure class property, it’s in all probability not that vital. However as you’re formulating your technique, whether or not you’re choosing a market otherwise you’re determining what kinds of offers to purchase in your market, perform some research. You need to know what’s occurring in your market. You need to have this info while you’re making these selections, however deal with it as a variable such as you deal with different variables in your underwriting and deal evaluation. At the least for me, none of those are true deal breakers. Hire management is just like the closest for me, but when the numbers labored and I actually appreciated different stuff, I might even take into account that. But it surely actually simply comes right down to having the ability to see the large image.
Take these variables into consideration with every little thing else and formulating your technique accordingly.

Henry:
And everybody, right here’s only a piece of recommendation I feel everybody ought to comply with in any market, however particularly for those who’re in a really tenant-friendly state, go be a part of your native landlord affiliation. There’s usually a statewide landlord affiliation that has branches in sure pockets, whether or not in cities or counties which have smaller branches. So discover your native landlord affiliation, be a part of the native landlord affiliation. Dues are usually fairly cheap, however that may encompass you with different landlords. Actual property’s been round ceaselessly, guys. There are individuals who’ve owned property for many years and a long time and a long time and something that’s going to occur to you or what you are promoting as a landlord has occurred to anyone else earlier than. So for those who’re a part of these landlord associations and you end up in a sticky scenario, now you’ve received a bunch of people that have in all probability handled the scenario 10 occasions over earlier than and so they might help you navigate the scenario.
They will additionally assist you forestall sure conditions, nevertheless it’s simply a great way to have higher sources in your facet. And I don’t suppose sufficient landlords are a part of their native landlord affiliation, however that’s simply simple, low hanging fruit for you to have the ability to navigate a few of these conditions.

Dave:
All proper. Nicely, that’s what we received for you guys right now. Hopefully this was useful for you all as you consider the place to speculate, what sort of offers to do. It is a common matter. Folks actually like speaking about it and it is a crucial variable, however hopefully as you see, it’s one factor to think about amongst many as you’re evaluating offers and determining your portfolio technique. Henry, it was nice seeing you, man.

Henry:
You too, bud. Good speak.

Dave:
And thanks all a lot for watching this episode of the BiggerPockets Podcast. We’ll see you subsequent time.