South Lake Tahoe just put a cap on the number of VHR permits they will issue, so you probably don't want to invest in a property in that town, for now.

Also Let's pretend this 2 million dollar building has a cap rate of 7.7%

From a CAP perspective, it looks in line with the apartment market as a good buy. 

NNN - I am going to negotiate a cap on the expense pass through for property taxes to mitigate the California prop 13 tax increase; ideally getting very close to what the current tax exposure is.

If we can earn $1.7m in revenue under a cap of $20m, why would we be limited to earning $1.5m under a cap of $50m? 

I think that’s the only way she got a cap rate of 8.6. 

If one where to buy, evict, reno and rent, it will be a fantastic deal with a cap rate at 11.37% and a cash on cash return at 22.49%. 

I would not buy any investment property with a CAP of only 9%.

In my experience an average system 4-8kw will raise a home value 12-16k, as long as quality equipment and a capable installer were used.

Using a cap rate gives you better expense return on a apartment complex than a SFH when you have add-value expenses which will earn you more money than on a SFH.