When interest rates remain elevated, headline yield is only the starting point. Net yield after maintenance, management fees, tax, and vacancy carries more weight in the purchase decision.

Well-located smaller units can still perform if rent growth is durable and tenant turnover is low. Larger units need stronger capital growth assumptions to justify the same entry price.

A useful stress test is to model three months of vacancy, a modest rent discount, and delayed resale. If the asset still produces acceptable cash flow, the investment case is more resilient.