My CAPEX and maintenance budgets for a partial year 1 and full year 2 were decimated, leading to a lot of unnecessary stress and painful situations.Set aside that money now, and either be glad you did or thankful that it potentially won't be needed.I'm sure John can help you with those estimates, but this is one semi-newbie investor to another with probably the only advice I'd go back and give myself buying my first true rental that I didn't already think about or know.

Again  NOI/Cap Rate (in decimal form) =Value (based on Income Approach)

.  -- Percentages are just decimals. if you can't agree between 3 & 3.5% don't be afraid to aim for 3%1/3, 3&1/4, etc.

@Jay Hinrichs"my minimum is 6 figures LOL"Is that including decimal places?

What happens if another big employer leaves, would it completely decimate the town?

Paying Genesis $3000/year would be a greater expense than paying my actual property manager and would decimate my returns.  

This will produce a decimal that can be represented as a parentage to indicate the APY (Annual Percentage Yield) due to cashflow. 

The ONLY downside I would see to the deal (even at the counter-offer price), is if there is something going on in the community which will decimate the rental market (e.g. the principle manufacturing plant in Trona is moving to China).  

A special assessment for a legal judgment or a new roof can decimate your COC return and turn a good deal into an instant headache.Best of luck

We have 300 days of sunshine, amazing access to the outdoors, diverse cultural draws and relatively mild(ish) weather.I sound like a Dept of Commerce ad, but all in all I think it's pretty safe to say that if marijuana were outlawed again tomorrow, we'd have a slight relief in the absolute insanity that is our housing market and an equal amount of relief in the unbelievable traffic issues we're facing right now, but not so much that it will ever go back to the "good ol' days" when an oil and gas bust in the 80s decimated the state.