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

Cap rates vary from 5% to 10% usually.

The property will cash flow $500/mo or more after all expenses and cap ex reserves, as well as the payment on the SBLOC.

A lot of people tend to mingle these things when they talk about "break even" or "cap rate", but that leads to a lot of confusion.Let's use some real numbers which may be easier to understand. 

Virtually any cap ex expense will wipe out more than a years returns. 

Make note of some important ratios and percentages such as COC return, IRR, CAP, yearly maintenance vs acquisition price, etc. 

The real issue is that they didn’t have a plan to monitor usage or set up protections to minimize costs during the eviction process.Ideally, the PM could’ve done things like:Limit access to unnecessary areas to reduce power use.Install smart thermostats to keep heat at a safe minimum.Request a utility cap in court during eviction proceedings (if allowed in your area).Bottom line: It’s less about the utility switch itself and more about proactively managing costs once the tenant overstayed.bro what? 

The plan is notorious for minimum insurance and they were previously capped at $20M for larger commercial and HOA properties.

Please let me know if you know areas that would fall in the cap of our budget.

I am not sure what my next move is (stay with the DST and lose $ or move to the REIT and eventually have to pay cap gains tax if performance isn't good).