Don't forget you're the most expendable one in the equation, why?

Almost all departments at Ocwen have been outsourced with the exception to their FNMA dept and team who handles GMAC accounts.Ocwen is now working all of their accounts in Equator which can make things a little easier as you no longer work directly with an employee from India who is not very sure of their actions as they are most likely new and lack training.Are you already in active review with Ocwen?

You're the MANAGER, which equates to you are RESPONSIBLE.

That's one of the reasons condos generally appreciate at a slower rate than single family homes.You can't separate supply and demand from the valuation equation because value is all about supply and demand.

That equation subtracts 30% off the top to account for your profit (20%) and costs (10% -- realtor is 6%, holding is around 2% roughly, closing costs are around 2% roughly).I think with a house listed at 25 percent of value, I would definitely be concerned that your estimate of 20k in repairs is not enough.

So I'm looking to erase him from the equation.

It has not declined but appreciation is something that I can not factor into the equation.  

One comment that did scare me -  @Curt Davis equated TK to a new car bought from a dealership.

The "9" I came came up with is not a cap rate but a baseline for comparison.As for deferred maintenance, you can treat it many different ways but you are correct that it is typically a below the line number, it does not normally get factored in as a cap rate calculation other than to the extent it affects the denominator in the equation or such repairs would increase rents. 

Nonetheless, as with any type of investing, be careful how much emotion you let seep into the equation.