Depending on the cycle, the cap rate may fluctuate percentage or so. 

Don't let anyone tell you differently though: markets will fluctuate...and sooner or later our markets will drop in value.

I personally like it when i know how much i am going to have to pay instead of having fluctuated rates all year round.

These banks, servicers, insurers, etc. know much more about the individual markets than you think.If there are set %'s they would fluctuate depending on the different areas, submarkets, etc.We perform 1000's of BPO's a year (for banks, private investors, shortsale companies, etc).

This is driven by better rent:price ratios during a recession, not buying high and going through the rollercoaster of house value fluctuation, etc.I can afford a house in a better location once house values fall in a recessionObviously, waiting to buy obviously only works if I am still employed and can get a mortgage approved in a recession.

Any fluctuations in cost or annual sales and the return almost drops down to zero.The only businesses I would consider are absentee owner with built in management already accounted for throwing off multiple 6 figure net earnings.That takes out about 80% of the businesses for sale.

You subject yourself to market risk when utilizing a LOC, 30k is not a lot of money so rate fluctuation won’t kill you, but it’s something you need to figure into the equation.

How would the #s fluctuate or what would change if closing costs were rolled into the loan vs. paying out of pocket in the loan example above?

Hi Thomas,I think your numbers became messed up somewhere.It's good to not include coin laundry as that fluctuates up and down in residuals versus the flat rent.549 X 4 =2,196 a month X 12 = 26,352 yearly so correct there as long as you have verified this is market rent with no security deposit concessions or first months rent half or off to get the tenant in.Next I would look at tenant loyalty.

I have also noticed that Zillow tends to fluctuate on a week-by-week, even a day-by-day basis, especially in smaller/towns where it will take one or two sales and throws off their formulas.