I'm particularly focused and eager to learn as much as I can about the Sub-To (Subject-To) method and Owner Financing.A little about me: I own a multi-service home improvement company, which has given me a solid foundation in property maintenance and renovation.

I think we could all agree there are basically three answers:A) Stay the course - keep adding 10 bps for each year held based on stabilized market cap rateB) Take a little risk - use the current market stabilized cap as the exit cap tooC) Throw caution to the wind - use a cap rate that is less than the current market cap (*If you pick this answer what method are you using to predict a cap rate)Which answer would you pick and why?

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@Gulliver R. you may be including in supplies, but this category can include coffee, other beverages, condiments, paper towels, toilet paper, garbage bags, etc.

But for individual lots to build just one home, you can use the methods above. 

Conventional loans will follow the same guidelines, here is a good excerpt:https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-r...DSCR loans have flexible seasoning, which could allow you to put the money to use quicker, outweighing some negatives.

Enemy method seems good too to help being realistic

Is this a good approach or is there a more simple method of calculating an offer??

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

You get tired after while if you follow traditional method.