Liquidated damages need to accurately reflect the actual loss and not just be any number you come up with (IE: you can’t charge $2500/day they go over time).

The numbers look great for a out of towner, but the issue is the numbers don’t reflect the fact it’s in the wrong part of town. 

Great story for anyone new or seasoned to reflect on. 

I don't see those expenses reflected in your budget.Even if this property is brand-new, you'd be better off budgeting a higher percentage for vacancy, repairs, and capex. 

The "high" prices in what may appear to be challenged areas reflect a multitude of variables. 

Closed sales reflect a meeting of the minds between buyer and seller, while a listing reflects seller desire.

The net operating income does not change in relation to the cap rate the CAP Rate changes as a reflection of the type location, class of the property etc.

DerekTriple net is Taxes, insurance and maintenance that is passed through to the tenant so the owner still pays these expenses and they are reflected on the P&L as operating expenses like any other property. 

Your IRA custodian will have a process to accept the loss and reflect it in your account. 

Hi @Dana Kimberly,The max lease terms were already mentioned, so I won't reiterate that, but 2.5% increase in rent is fairly standard as this number reflects the average national inflation rate.