That kind usually has a cap of I think like 400 basis points meaning the highest it will ever go if the original rate is 6% is 10% and I can count on the money being there for 20 years.The other kind is a 5 year term loan amortized over 20 years meaning the loan is due in 5 years but the payment is calculated as if you're going to pay it off in 20.

A common practice for some turnkey providers is to list a cap rate that is superior to CA returns but well below average for the area. 

@Caleb HeimsothUsed to date a Wiccan art major who wore a cape in college.

@Bryan Bannach The 10% cap is only for owner-occupant properties, there isn't a cap on investment properties.

Does anybody here want a 5% cap L.A. townhouse for $469,000? If so, please notify me.  Thanks.

Areas I was thinking of is, Mountlake Terrace, Ballinger Lake, or Lynnwood area.That was until I kept reading and realized that mortgages have a cap, in terms of the amount of money they would be willing to loan you.

Specifically I plan to  Raise long term tenants rents, biweekly calls with PM, Create a cap ex budget.  

One way that TK operators will get you to overpay is to sell a SFH based on a cap rate.

I'd love to add to my rental income and know I have a consistent cash flow from another property rather than hope the market has a decent return each year.I have a condo here in Punta Gorda in my real estate IRA with a cap rate of 7% right now. 

We do a $200 non-refundable pet fee and $25 per pet per month with a cap at 3.