Plan on 1031ing into it purchase price of 11m with about 3.5. down. 8% cap rate @ a 6% rate. 

$500k in cap gain can be tax-free if you're married. 

And they might have had a rolling discount from increase % caps. 

Guess what since previous weak tenant was market rent you are losing your ***.I look at high cap stuff when it's few years left ( blend and extend ) or it can be weaker tenant at higher cap rate like 10 cap BUT I want them paying about half the going market rent for the building size or less in that market.

As Opposed to cap rates and are the tenants paying 900.00 a month going to trash my cash flow rental :) We are of course on the same page regarding agents I have had hundreds come through my brokerages and 80 /20 has been alive since day one.. 20% make 80% of the revenue..

Taking away the garage from the existing tenants will lower the rents on those units.Currently they are:4 bed 2 bath rent = $2,000 3 bed 1.5 bath rent = $1,600I think the 4 bed 2 bath is the one with the partial conversion, and three units might look like:3 bed 1.5 bath = Rent $1,500 (no garage)1 bed 1 bath = Rent $1,1003 bed 1.5 bath with garage = $1,600Don’t be misled by the 6.6 cap rate in the listing, they are just using gross rents which is incorrect. 30% (25% expenses and 5% vacancy is standard in our market), and this is really a 4.7% cap rate.

Location & Demand: Prime neighborhood with high tenant demand, no more than 2 weeks vacancy over 10 years.Strategic Positioning: Rented/sold at market's lower end with a 8-10% annual cap rate.

Lenders will cap you at 75% LTV and may require proof of at least 12 months reserves.

Or everyone's favorite: "expand your cap rate 10bps every year you plan on owning".  

Does that affect the $750,000 cap on interest deduction?