I've bought 7 and sold 3 over the past seven years; I'm closing on #8 now, and anticipate a 4 month renovation on it..

Since cap rates are the result of market actions AND a lower cap rate means possibly that the market is paying MORE for an equivalent income stream than say Surprise, AZ it could be very well that there is market anticipation IN LA that rents are on the way up or that prices will increase even more or BOTH.

Price is 1.125, and we'll be financing 73% The house is 4000 sqft.As it was gut renovated in the last 2 years, not anticipating major repairs.

Lenders have guidelines based on decades of historical data, they anticipate future concerns more than simply looking at the borrower's picture on any Tuesday.

Ive been holding out on getting active in my current area as we have anticipated this move.

lastly, another tip is to have a lender (mortgage company, bank, credit union) go through all the paperwork and have them send you a "GOOD FAITH" estimate it will have a list of "anticipated fees" both you will pay to the lender and you will pay out of pocket directly to another company in the process (appraiser, termite inspector and or etc) when you get this good faith estimate call and say the origination fee is unacceptable after all you are an educated buyer and hope to use your bank for additional deals surely you can get rid of these fees.

Obviously I do not want to put an offer that is accepted THEN find out I have much more expense than anticipated.

As for the PM you may not agree but he may be anticipating future non-payment based on his experience and you pay him to do this.

I'd say you're anticipating possible problems and getting caught up in believing the fantasy.

Most likely thermal radiant heat in the floors to avoid running duct work.I anticipated somewhere in the $30-40k range but got a quote of nearly double.