Apply a cap rate roughly 2 points higher than mobile home parks.

Also, a state law went into effect putting a cap on "non-exempt" properties tax increase at 20%: https://comptroller.texas.gov/taxes/property-tax/valuing-pro...

This can add up.Property Standards: The house has to meet certain standards, which might limit your choices in a competitive market like LA.Loan Limits: There’s a cap on how much you can borrow with an FHA loan, which might not cover the higher-priced homes in LA.My Take:If you’re set on buying now and can handle the extra costs, FHA could work.

Ideally, if you *have* basis in your S-Corporation, you can dissolve it in the same year you distribute, thus you’ll have a cap loss to help alleviate the cap gain.Gain likely won’t be mainly ordinary if the bulk of depreciation is on the 27.5 year or 39 year lives.

If you're considering a DSCR loan, most lenders won't assess the property's value using a cap rate.

Some programs will let you spend as much as you like to buy the rate down (to their rate floor), while others do have a cap of 3-5% max buydown like you mentioned.o Seller concessions: The typical max allowed seller concession on a DSCR loan is going to be 2-3% of the loan amount.

You should look for a property that has a minimum of 85% occupancy and has a cap rate of 7% or above.

From there you can subtract expenses and calculate a cap rate which will help you compare different properties. 

Let's say your seller bought the condo for $75,000 back in 1993, and today it's worth $300,000 - completely fictitious numbers - but go with it...Where I live (in Florida) there is a cap on how much the government can raise your property taxes a year... it's like 3.5% a year of the assessed value.  

They will be fixed for a short term then adjusted or renewed or they will be adjustable, there may or may not be a cap  rate, so check on the index and the spread as well.