While yes, near core Seattle cap rates have been typically trading between 4.5-5%, I would suggest you rather, or at least in conjunction with cap rates focus on the gross rent multiplier.

Couple things Account Closed,If you're going to hike rent on your tenants long-term average at least 3% per year, you can let them to pay your 30 year mortgage off in 20 years pretty easily:Take whatever last month's P&I+Extra payment was, multiply it by 1.0025 (3% / 12 = .25%), and make that your next monthly payment.

I would sell them to get out of them, I just don't see the long term value and instead would use it as a shorter term approach to multiply your available capital.

Purchase Details % Purchase Price One Time Monthly Annual Full Market Value $400,000 Assessed Value: $325,000 Purchase Price Percent of Market Value: 92.31% Purchase Price: $300,000 Equity at Purchase: $100,000.00 Down Payment: 20% $60,000.00 Mortgage Amount: 80% $240,000.00 Mortgage Length: 300 25 Mortgage APR: 7.0% Mortgage Payment (Principal Payment) $1,696.27 $20,355.24 Closing Costs: 2.0% $6,000.00 Renovation Costs: 3% $10,000 Out of Pocket Costs: 25% $76,000 Total Renovated Cost: 103% $310,000 Rental Information % # Units Monthly Annual 2% Rent of Purchase Price: 2% $6,000 $72,000 2% Rent of Renovation Cost: 2% $6,200 $74,400 # Units: 11 Unit 1 Rent: 0.17% $525 $6,300 Unit 2 Rent: 0.16% $500 $6,000 Unit 3 Rent: 0.17% $525 $6,300 Unit 4 Rent: 0.16% $500 $6,000 Unit 5 Rent: 0.15% $450 $5,400 Unit 6 Rent: 0.20% $625 $7,500 Owner pays gas, water & electric Unit 7 Rent: 0.31% $950 $11,400 Owner pays gas & electric Unit 8 Rent: 0.31% $950 $11,400 Owner pays gas, water & electric Unit 9 Rent: 0.31% $950 $11,400 Owner pays gas & water Unit 10 Rent: 0.21% $650 $7,800 Owner pays gas & water Unit 11 Rent: 0.21% $650 $7,800 Owner pays gas & water Gross Scheduled Income (GSI): 2.35% $7,275 $87,300 Vacancy % 5.00% 5.00% Vacancy (V) 0.12% $363.75 $4,365.00 Gross Operating Income (GOI) 2.23% $6,911.25 $82,935.00 Average Rent/Unit: 0.59% 661.36 $2,236 Calculated Financials % Monthly Annual Estimated Operating Expenses (OE): ($3,255.22) ($39,062.69) Estimated Net Operating Income (NOI): $3,656.03 $43,872.31 Annual Debt Service (ADS): $1,696.27 $20,355.24 Capital Expenditures $1,747.54 $20,970.50 Estimated Cashflow: $212.21 $2,546.57 Estimated Cashflow per Unit W / Cap Ex $19.29 $231.51 Estimated Cashflow per Unit W / O Cap Ex $1,959.76 $23,517.07 ROI Based on Downpayment 0.35% 4.24% ROI Based on Out of Pocket Costs 0.28% 3.35% Additional Analysis % One Time Monthly Yearly Purchase Price Per Unit $27,272.73 Renovated Price Per Unit $28,181.82 Gross Rent Multiplier (GRM) 3.44 Capitalization Rate 14.62% Debt Coverage Ratio 2.16% Purchase Property?

This is after 10% management, 10% r&m, 8.5% vacancy, mortgage, current taxes multiplied by 1.2, current insurance multiplied by 1.2, any utilities im paying averaged for the year multiplied by 1.2.Normalization includes me doing any repairs or renovations such as replacing the 60 year old furnace or similar.

So when evaluating a property in Texas, always, always use either the purchase price or current valuation, which ever is higher,  and multiply that value by the collective property tax rate to calculate your property tax carrying cost.I'm doing great in Texas, you just have to buy good deals and appeal your taxes every. single. year. 

And for those (crazy) people who want to put each (SFR) property in their own LLC, multiply the number of accounts by your LLC count to get the number of total accounts you will need to manage.

The main issue is the amount of money you spend does not equate to your remaining eligibility since your eligibility is guaranteed on a sliding scale and then banks back the loan up to a multiplier.

The negotiated price is also on the high end of value using gross rent multiplier.

She also had a few fleas in her car b/c of all this, so i can't wait for them to multiply.