In the first example, the rents may be dramatically under market and can be raised almost immediately making the property a 12 CAP.

I'm sorry I over dramatized the "EXPLODING" part.

Add the qualifier "real estate" to it and the meaning changes dramatically.

If we find anything dramatically out of order with financial and physical due diligence, we renegotiate or walk away from the deal.  

Now subtract off just expenses related to mananaging the lots (not homes) and now you have a appraisal price this is much lower, often dramatically lower.The standard offer is to offer no less than 10 cap, no less than 30% expense ratio and income just from lot rent or the area prevailing lot rent if its a park owned home park.These deals often wast time and due diligence expenses just get get the banks appraisal and it's way (sometimes way way) low.I suggest you re calc the park value based on lot rent, 30% expenses and 11 cap.  

While I don't expect interest rates to rise that dramatically in that short a time period, it is important to plan for a higher interest rate environment in 5 years.

The level of tolerance is decreasing as evidenced in the new final rule issued 2-29-2012 and in the fact that criminal prosecution of AML Compliance Officers/Coordinators has increased dramatically in the last two months in even very small community banks, especially in "high risk areas" as defined by the federal government.Obviously, I advocate for taking no chances when it comes to AML.

It is a process that has been going on for decades and had dramatically increased in speed and intensity in the past few months (under the guise of a crisis).

What I am about to say probably could be an entirely new thread.but I find it interesting that in the three years since i first wrote this post.not only has the sentiment on this thread changed dramatically  (can we say 180 degrees)but I am finding other landlords in my neighborhoods are also stepping it up.where I once had the nicest apartment in my class for about two years.I am now facing stiff competition.  

They ALL have a dramatic super tragedy to tell before they stepped up and became successful.Kroll hated grasThe dude from F2F was cocky and lost it allthe list goes on.True or not, here is what I took away from all this.Assume you are intelligent.. and you have a good enough grasp on your conscious mind yeah?