If we can get the true NOI, we need to verify ALL the expenses have be accounted for.Using some some-n-mirror number for a CapRate is deluding yourself and it's far worse than using the 50% rule.Your question is precisely why I wrote the the Great Fallacy to clarify the improper use of the CapRate.

You can also do a VA mirror Wrap and USAA never gets involved or you can do a Land Contact and USAA never gets involved. 

@CJ Edenfield  you will find that most HML if they want to stay in business and value their portfolio will have terms generally  that mirror Account Closed terms.. pretty much universal.however once you get track record with a HML and have many deals done things can change....

So it's really mostly smoke and mirrors to rely on that. 

If you really want new investors to learn you would post the real story instead of smoke and mirrors.

Landlord wants me to come back and wipe the bathroom mirrors with windex, use his vacuum to do the bedroom floor, clean better in the shower tub, and sweep the floor by the door path where I kept my shoes.

Mirroring what @Evan Kraljic recommended, Jeff from Home Renovision on YouTube is my favorite DIY videos.

She hands off material lists, kitchen layouts, where and how high to hang the mirror and light in a bathroom. 

Depending on your location, you would probably be looking at the following for 10,000sf and 13 units:- Sheetrock, Tape, Mud: $25K- Paint on Fresh Sheetrock: $25K- Cabinets/Countertops: $25K- New Plumbing: $25K- New HVAC: $25K- Appliances: $25K- Bathroom Tubs/Vanities/Mirrors/Toilets: $25K- New Electrical: $20K- Cheap Flooring (Carpet + Vinyl): $15K- Exterior/Interior Doors: $5K- Windows: $5K- Electrical Fixtures: $5K- Plumbing Fixtures: $5K- Water Heating: $5K- Trim: Door Knobs, Outlets, Switches, etc: $5K- Permits, Dumpsters: $5KThen, add on the 10-20% overhead of having a GC manage it all, and you can see that it's easily on the order of $275K, or about $27/sf.This is for low-end interior gut rehab, and doesn't include exterior rehab, and doesn't include any of the higher- level of finishings you would want to use in a house that you would be retailing.Add those things in, and it's easily $30-40/sf, which is the number that I generally use in my area.

This one was a hoarder house, we cleaned out the entire property, new flooring throughout, new paint throughout, new kitchen (cabinets, stainless steel appliances, drop in sink, granite countertops), new bathroom (vanity, mirror, tub, tile surround), lots of landscaping, roof repair, some new windows / sliding door.