Once you get the Cap rate of a property, you must verify that it is accurate and not inflated due to inaccuracies, inflated revenues, or missing or shorted expenses.

I personally think "inflated"..

I've brokered 3 flips with him and we've cleared at least 20% (which we get excited about in Denver, land of the inflated purchase price) on all three; two of which were under contract within the first 2 days.

You know I'm a sucker for long-term fixed-rate financing - such a great inflation and cash flow hedge.

For instance, I have a 40 unit investment purchased with seller financing- the cap rate is around 6% (seller Financed properties have inflated prices hence the lower cap rate), the cash flow is in healthy 5 digits;So still a great investment given the nature of non-institutional debt and the great cash-flow.We specialize in off-market deals & what we teach our clients is to not get stuck in cookie-cutter calculations but evaluate each deal in its own merit.

However a lot of wholesalers push deals where the numbers do not work, inflate ARV and underestimate repair costs.

Needless to say that has artificially inflated prices for rental properties especially under $150k.So if you are looking to buy rentals- stay clear of the MLS and don't take recent sales comps at face value as a measure of ARVs; know expense calculations to know your true Net operating income; you will be surprised how it can often be way off than what most wholesales would have you believe.Let us know if we can assist in any way- our specialty is in providing data on finding & evaluating off-market deals.

In my opinion, with the way the government thinks it can spend its way out of debt, there are very few solutions, if any, other than inflation.

I agree that the article sounded a bit inflated for what it was.

My guess is that your ARV is inflated and you are to optimistic on repairs as well.