Therefore, the oven can only be set at 350 degrees or less and the tenant cannot bake anything at more than 350 degrees. 

@AP Horvath cap rate is going to have quite a degree of variance depending on multiple factors, 3 primary variables being:Asset class type (A, B, C, D)Property condition (turnkey vs value add)Location (especially with property taxes here)Again, it varies on the factors above and if you are calculating your cap rate via purchase price model or projected price model.  

Hi @Ryan Fisher, I'd be curious how closing costs on a $460k property are $3,000, and how there are $0 in repair costs on a 4-plex (with what I'm guessing are varying degrees of tenant quality).The seller likely views it as "great cash-on-cash return" because they bought it in 2011 for $175,000: When they say "great cash-on-cash return", they're probably referring to their own ROI, i.e. how much they're earning compared to how much they invested back in 2011.  

If you want to know your max purchase price formula it's: ARV x .7 - Cost of Rehab = Max OfferBut the overly dramatic example I gave (sorry... but it can turn real quickly) is why you have to know that cost of rehab with some degree of certainty, or else simply asking what percentage of 65k would make it a great deal is irrelevant. 

I'm sure some trades require some basic understanding and community colleges and trade schools offer a lot at very low costs (especially compared to college degrees :) ).

So many students graduate with degrees only to struggle their first 2-3 years in the real world in their career.

@Brandon MetzYou can put in a thermostat that limits the setting to 72 degrees or what you choose.  

It is my understanding that yes, they do factor in cosmetic condition to a degree.

"fell off the boat"  : )@Bruce GardnerI think a lot of the disparity in perception of CPA value comes from 180 degree misunderstanding. 

For example to become a licensed broker where I operate (Ohio) you need to go through government background checks, have worked in real estate as a sales agent under another broker for at least 2 years, have a college degree, have a physical store front with office hours, have done at least 40 transactions and much more that I can't think of off the top of my head right now.