We can have a productive conversation about that, but most people - especially new folks - stop at the "cash flow" number because the money-in / money-out mindset makes sense to them.When we sit down to calculate an IRR, we have to estimate future numbers based on past evidence - rental rate movement, Capex expenses, cost of labor, vacancy, vandalism, and - yes - market price movement are just some of them.

In Sask around Regina concrete tanks only last 15y because of ground movement while plastic last a little longer.  

Too many people want the finer things in life NOW, so they perpetually chain themselves down.

@Mike Cumbie is that a Movement Mortgage lender?

Good business will help perpetuate more good business....as opposed to being tied up in court and having to worry about if your "weasel clause" is going to hold up.  

I would not go into a deal that doesn't have room for mistakes/market movement, so I don't think you're conservative.

From a macro-perspective, they would be relatively more sheltered from downward market movements than smaller secondary or tertiary markets.

They have no incentive to sign anything increasing rents, so are they locked in for perpetuity at their current rates or something?

Do you set aside so much until you hit a certain amount, and then count the full cash flow as spendable money/monthly income, or do you just keep putting away those percentages in perpetuity?

We live in Miami -- which has seen record growth and movement.