At least a few years ago, the cap on section 8 was pretty low in comparison to market rate for where our building was located.   

Also, many HOAs put a cap on the number of allowable rental units (as a percentage of units in complex).

@Fred Kite you nailed it.  

However, there will always be a cap on the purchase price for a neighborhood since an investor can always go in a better neighborhood for the same price. 

I think 7 cap on proforma is way too low.

Curt pretty much hit the nail on the head.

There are so many options for types of letters used, type of area, type of properties to nail down what you could do differently.

Below is a quote from the county property appraiser: "The cap only applies to the portion of the property receiving homestead exemption.

He built, tenants came, his investments took off like a rocket, his coworkers were left to try and make a living pounding nails for someone else, saying " he got lucky".

An easy fix is to nail down areas that are coming up and caulk the cracks with similar color caulk or you can go over the laminate with peel and stick flooring and you don't necessarily even have to remove any trim or toilets.