So far we've been dealing in SFH that carry around 6-8% cap rate and have been happy with that but like the idea of have 1 building to maintain and acquiring multiple units in one transaction.The issue with coming up with a price is that valueing it based on current cap rate with under-market rents is definitely far below what it's worth, but a value based on a cap rate at market rents is also not representative since the building is obviously worth less with it's current income.

For example, if you have a cap-ex reserve that could probably be in a less-liquid account (such as a short-term CD) since you may have a higher degree of confidence that you will not need to touch the money for a few months. 

If yes; syndication wins nearly every time IF you have a capable sponsor/operator.Turn Key in general is a bad/mediocre model for the retail buyer.

Thanks for the explanation Stone,The cost of a roof isn't the same (Due to the property most likely being much bigger/newer) and neither will be many other fixes IMO so the capex isn't the same.My belief has always been the same and that is that a cap rate is a "cap rate" no matter if the rent is $700, $1,700 or $17,000.I always underestimate income and overestimate expenses.If the numbers look good with that added buffer, then the investment might be worth pursing further.Just my opinion.Much success

Raising your hand and asking the speaker at these "what is a cap rate, I don't understand?"

Several council members are in favor of putting a cap on the number of allowed STR's (similar to Manitou Springs) but it was put forward by Meghan Herrington and Jill Gaebler that we don't know how many there are until everyone gets registered and then the data will be there. 

I see in their supplied Proforma that Net Operating Income is $75,720 and their listed Cap Rate is 5.11%.When I do the formula for finding value (value = NOI/Cap Rate), I end up with $1,481,800.What this appears to tell me is that they are charging a $218,200 premium over the value of the property when figured against a Cap Rate of 5.11%, correct?

Thanks @Dan CumberlandI am also seeking a cap rate of 10% or higher but have not been able to find such opportunities but at the same time do not want to sit on the sideline and not learn anything.

As a developer/GP you will make your money from the developer fee (there is a cap on this depending on your State's QAP), but at year 15 you have the options to repeat this process and do it all again.

Is there a cap on losses or is it just depreciation?