A 6 cap feels thin for a small market.

Investors chase the CAP rate and it works for a while until it does not and then they end up selling to the next fool. 

Most HML lenders cap at 75k-100k minimum (with some going as low as 50k but I personally don't know one that can do 30k).

Then what do most STR owners shoot for cap wise?

Prop 13 that caps prop tax increase at 2% annually is long term investors best friend.  

-NOI (past 2-years if available)-Vacancy %-Repairs needed-Pro forma-CAP Rate (something around 4-5% is what you recommend?)

. - Maintenance & Repair: 5% of total rent- Cap ex / utilities: 5% of total rent- Property management: 8~10% of total rent- Misc & reserve: 5% of total rentFull rent: 4800(rent) - 2600(PI) - 800(TI) - 1150(Expense) = $250/mOwner occupied: 3600(rent) - 2600(PI) - 800(TI) - 1150(Expense) = -$950/mOwner occupied & no PM: 3600(rent) - 2600(PI) - 800(TI) - 700(Expense) = -$400/m I thought it would be $0/m if owner occupied although $400/m for myfamily is low enough.

@Chris MartinAgree5-6 years ago when blockchain rage was saying all real estate will be on blockchain - still have yet to see a way blockchain is used where it has added benefitThe odds of getting counties all to buy into this and fire the clerks working at recording office for last 30 years is not gonna happen.Similar to seeing “fractionalized” real estate - which to me is no different than a public company and owning shares - you have a cap table.

That's what might be priced better, but with no experience and a plan to leave you don't want cap ex.

Hi All,Trying to understand if anyone else is finding any residential  deals in Nova area and at what cap rates?