My company has a cap to the amount of commission you have to pay them in a year, and I have "capped" for the year. 

FHA has a cap as to how much you can add to the loan and the seller has to agree to it.

First of all, Yucca Valley is heavily restricting permits and they have a cap on them.

There is a cap but I don't know if off the top of my head.

@Ramiro Rodriguez, A move from an existing rental to new construction can be very positive from a cap ex and rentability aspect. 

I'm sure you know the drill, but the standard way to value this is (4 lots x $250) + 600 x 12 x .5 = 9,600 which at a cap rate of 10% is $96,000 plus the value of the three mobile homes (maybe $5,000 each based on age and condition) = $111,000.

I use Deal Check and it gives me a cap rate of 7.8% on this property (I won’t list all the other numbers).

That way, you won't be fooled into speculating on a less profitable market like Honolulu and instead can buy a turnkey single family with a Cap rate of 10 a few thousand miles away in the Midwest ... that's the way the real pros do it, Bob. 

The prudent approach would be to try to buy a class B/b plus with a reset cost basis and budget 2-3 years flatness in rent, larger bad debt and large rent concessions, and a cap rate increase of least 1.15 percent in 5 years. 

Denver looks different than Georgia which looks different than Cleveland from a cap rate perspective.