If the CPI is 8% and your loan is at 3% then the time value of money kicks in and the government is depreciating the value of your debt with the 5% delta between those two numbers. 4) One thing that may help is to figure out the ROI you will most likely get converting your home to a long term rental.

Even though the stock market is blowing up, I still believe that the delta between Wall St and Main St is just too massive to write-off.

Jeff: I plan to set the rate as a delta from one of the Bank of Canada indices; likely either the Convention Mortgage -3yr (V122522) - currently 3.95%; or Conventional Mortgage - 5yr (V122521) - currently 5.34% and only adjust it {semi-}annually.

They also claim that the Delta faucets they sell are better quality than HD sells because HD wants to keep the price down.

We only need to pay interest delta at the time of repayment with some factor.

Another possiblity to consider is to only use delta times (rather than Raymond's post reading "03:07 PM", it would read "50 minutes ago" or something similar).

Whatever that delta is, that's the potential value of owner-financing.

. - let me translate what @Bob Bowling said :)Cap Rate is not a good metric of return, but if you use it as such, it uses the NOI (Net Operating Income) as the basis:NOI = Gross Potential Income - Operating Costs (operating costs do not include the debt service).So - the $36,000/annum of presumed CF is the wrong figure to use in a valuation formula since this includes the debt service:Cap Rate = NOI / Value = ($36,000 + Annual Debt Service) / Purchase PriceNow - to Bob's second comment as to why does it matter if Cap Rate really is 2.5%What Bob is likely talking about is that if you buy a building at 10 Cap, force the NOI up by 20%, and turn around and sell at 10 Cap, you will make money in the delta.

@Ming LimI wouldn't bother with the 10-yr term mortgages, the interest rate delta usually negates any false peace of mind.In fact, I would endorse using 5-year term, variable rate mortgages and hedging the interest rate yourself.

An increase of 15+ degrees in delta is a pretty big jump.The very basic calculators I tested show you need about double the number of tons to fix this.