See attached Excel summary sheet.Investment Highlight89% Physically OccupiedSupply Index in a 3-mile radius of 6.8 SF/Capita, 5-mile radius of 7.7 SF/Capita, and 10-mile radius of 8.3 SF/CapitaAdditional Income generated from 4 mobile home lots and 1 mobile home (Not Verified, as thus not included in underwriting assumptions)Key Underwriting AssumptionsDown Payment 25% of Purchase PriceEstimating a CAPEX/Repairs cost of $150,000Estimating Operating Reserves of $10000Stabilized Vacancy and Concessions/loss to lease at 10%Using a cap rate of 7.23%Key Demographic DataTotal Square Footage 21,130 Supply Index: 6.3Population 3,338 1 Yr.

I am starting to see more people put a cap on electricity in their lease agreements, though.

Being able to transfer a license from one property to another in residential zoning districts will be a big issue in the future and there is a cap on the number of permits allowed in specific zoning areas.

A cap rate is independent of debt and assumes you have accurate expenses which you'll almost never find on residential property.

But, if you want to get an idea, you should find similar 5-unit sales and derive a cap rate for the market, estimate your projected NOI, and derive your estimated value range.

General terms:80-90% LTV/ 100% LTC with a cap at 70% ARV9mo note at 12.99% I/O3pts Origination$1k UW$1k LegalAdditional costs - title, appraisal, property insurance (~$2k)10% of renovation estimate as contingency due at closing.Renovation funds issued on a reimbursement basis for work completed.Looking for constructive feedback.Thank you to all that contribute.

The real estate in this case also happened to be phenomenal and McD's crushed it out of the location so not only did the interested parties feel that they could take a lower return in exchange for the lower perceived risk that McDonald's would ever close this location but they also knew that the underlying real estate had inherent value and they wouldn't be left holding a bag if McDonald's ever did close that location.I would also note that there are other things to be cautious of when reviewing deals on a cap rate basis.

I am looking at this property12906 venice blvd 90066price is $1495000As you can see in the listing, they claim this property is rented at $10,000 a month$120,000 / 1495000 = 8%any idiot (even me) knows in Los Angeles you would be lucky to get a cap rate of 4%what's going on here?

My challenge is in finding a cap rate for Arkansas (Fort Smith) multifamily properties.

Whatever you use, make sure it's state-specific.6) Putting a cap on utilities is smart, especially when you're starting out and have no idea what they're going to cost you.