It should have some sort of a cap - surely they aren't taking 15% of a roof repair or expensive plumbing repair...The management fee of 10% during selling is also ridiculous - are they taking a commission when the property sells?

Additionally, Fannie Mae and Freddie Mac will sometimes temporarily suspend the income cap on their HomeReady and HomePossible programs, which allow purchases with 3% down.

your use of CAPS on the word FULLY is helpful. 

With your balance sheet and cash, you can put together creative deals without giving up equity and without using your cash but you are going to need to find a market and product which has 7-8% cap rates.I invest in the northeast, Great Lakes area.Diverse economies with education, healthcare as the back bone and tech as growth.In your area, you’ll have to raise way more capital in the form of equity just to meet DSCR with the banks.

That could be achieved without spending an inordinate additional amount in cap ex; In fact all I have seen had these items in common1.

And where you'll see cap rates go up is in the older assets and smaller markets.

That makes sense with the cap rates I was coming up with (over 9%).

It's the cap rates that don't always deal with direct dollars and instead talk in percentages (unless you pay cash for the property).Okay let's see.... ($2000/month = 12% return) vs. ($500/month = 1000% return).

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

At a 7% cap rate= $685,000 for the same amount of effort and risk.2.