Including the cost of a roof replacement on the proforma, for example, would likely drive the cap rate to zero even though the property may cash flow well in subsequent years. 

Do the gains (tax owed) from Prop A keep carrying forward to subsequent properties as long as we follow the rules & invest up?

@Vishwas He No, using a POA to acquire the property won't affect a subsequent sale.Interesting that your lender has no issue with that arrangement. 

That can really amp up your income and subsequent valuation. 

In all fairness to K MArie Poe great post writer on the original thread.the original couple that went ga ga over the shower head ended up having to break their lease after 10 months they could no longer afford the rent. they did provide fair warning and did their best to clean up the apartment.and were understanding when I did not return their security deposit.Moreover, they were never a day late with their rent.they left the place rather stinky due to a rotten potato in the cabinet which went unnoticedand I spent 3 weeks cleaning the place to get rid of the stinky weed and cigarette smell.the other first tenant was a nightmarehe paid on time and was clean but did he complain about every single little thing.since those renters moved outI have had no problems from the subsequent tenantsThe difference was that the second tenants moved into a place withall the appliances in place. including dishwasherOverall I think I will always strive to offer more for the same dime. whenever possible.fyiand the no vacancy piece I think is a testament to the business model

I could be wrong, but isn't it true that you also have to buy any subsequent yearly liens on the same property in order to still be able to foreclose if it's not redeemed?

@Andy Freeman I agree with you and pretty much said all that in subsequent posts as well.

I can't live that far from work, but I would absolutely consider it for my subsequent investment properties.

So, in this example, getting the 64% IRR assumes that the $20K down payment (and subsequent payments) are reinvested at a 64% IRR.

I have viewed great looking properties and when I was subsequently granted access to other units discovered units with obvious mold growth, fire damage, and squatters.