I also appreciate that it's not "early" in the cycle so I want to be measured in my commitments.

I’ve been guiding myself by the property measurements on the survey.

What would become your new measuring points in this type of area or would you keep the same formula for these type areas as for all of your deals?

Turns out that's not even close to what he needs, he requested this neat thing called "measurements".

If you will measure that little piece standing proud of the case that is the size you will need to add there.

If that is the case, then you might consider including a small acquisition fee for all the up front effort of sourcing and securing the deal.With limited info (and even with all the info) I can only tell you that it ultimately depends on what your goals are, what you think is fair and on what your partners are aiming to achieve out of this deal as well.Again, talk to your real estate attorney and your real estate CPA and have them advise you on the best structure to move forward.Probably not the straight up answer you were looking for but I hope it helps.Good luck!

Just a quick question regarding the BP Rental Calculator.In an attempt to better understand metrics used to measure the feasibility of rental properties, I have been trying to reproduce the numbers presented by the Rental Calculator.My question is in regards to the 2% ratio  shown.

Cap rates have some flaws, but they are one of the good measurements of real estate return.It is fair to include closings costs into the purchase price, to determine your cap rate. 

It is not a good measure of determining whether or not a particular deal is good, especially small rentals, except as a potential hurdle for further analysis.On paper your deal looks OK.

Just to take measured steps toward your goal and you'll get there.