The REIPropertyAnalyzer actually calculated 2% (which explains my number discrepency), but 5% is probably better.

The problem arises when there is a large discrepancy between the two models.

The discrepancies are less about $50/month rent including both units and about 2 months extra term on the lease than originally stated by the seller.

We ended up meeting in the middle because it wan't worth it for me to walk away from the deal, but frustrating nonetheless.All I can say on the subject is make sure the exact dollar amount you expect to get is explicitly stated on the closing statement and make sure the seller sees it BEFORE closing so that, if there are any discrepancies, you can iron them out before the closing table.

If you find a discrepancy we (or I) would figure it out.4. 

This ambitious financing structure is the main reason for the discrepancy between the cap rate and your COC return.

Once it's finalized we review their monthly reports comparing actuals to budget and get the manager's action plan for correcting any discrepancies.

I've also personally had 2 appraisals on my home - these 2 appraisals, one for a HELOC and the other for the auditor were $250,000 apart from each other - I'm not complaining as it worked to our favor....but that is an insane discrepancy.  

I often explain this earning discrepancy to real estate agents who ask me if I think owning properties is more profitable than simply selling them.

Yes at this point all I was thinking about was what would be how to give them the asking price they wanted on a loan as an exercise.Clearly that is just a waste of time as the numbers won't possibly work if the discrepancy in price is significant.