I know that water is available at the road if I wanted / needed to connect, no sewer available, not sure about gas.I created a cap expenditure spreadsheet to try and accurately evaluate the costs, but Im not sure about it.

Have people ever been able to either get a fixed rate option or that there is a cap on the interest rate?

. @ a cap of 7.5%.

Subject to change in 10 years however(but has a cap).Message me if you need any help or advice!

Hello, I've been searching rental properties in Austin for the past 2 weeks and did not find anything that passes the 1% rule or has a cap rate over 7%.

The best you can do is to evaluate it yourself based on the 3 factors and appraiser should use.1) Income approach - project rents and NOI and use a cap rate you feel appropriate to the market.2) Comparables - look for anything similar sold in that area or surrounding areas.3) Replacement - if you're essentially rebuilding it look at the cost of new construction.

@Jason Ma That's a pretty large spread on a cap rate range.

@Casey Barickman I had a similar rate quoted in Maryland but it was fIve year fIxed , prime +1 amortized over 25 years but there was a cap at I believe 9%.

(I still have a ton of research to do on this topic) My understanding is that we currently have a cap of one VRBO per person.

The reason 10% sounds to good to be true, is because a cap rate that high is indicative of a high risk asset.