I'm ready to downsize and live in a a smaller place but did'nt want to buy a condo because of the perpetual hoa fees.

It's ok to speculate and leverage but if you believe in the famous BB postulate of "perpetual appreciation" combined with no exit strategy and leverage then your going to be in for a rude awakening, the only question is when.

Every time that pump cycles it creates movement on that piping system and tends to loosen the grip of these clamps over time.

You can also think of a cap rate as an infinite series with level payments, or an ordinary perpetual annuity.

., it is technically perpetually leased, meaning at the end of the year lease it will transition into a month-to-month lease for the life of the tenant (as long as the tenant continues to pay rent and at the increased rental rate).

Block the movement of the air and you'll block the movement of the sound. 

So these guys are perpetually at 25-30% equity.65%+ equity across all real estate assets?

Sounds like this will prevent a ton of movement within the overall MSHB portfolio.  

However, if I have to go that route, I suppose it beats having the $200K+ illiquid perpetually. 

These projections are very unlikely to be accurate regardless of how good your perspective is, so you get a nice and neat IRR number which is, essentially, worthless.Having said all that, if you wish to calculate the IRR, you can either assume an eventual resale and plug it into the cash flow series, or, if you think you will hold the property in perpetuity, you can just assume a series of cash flows based on your life expectancy or even beyond.