Well that looks good at first but if I call you and ask you where you got your numbers from, how did you derive at repair costs and you cannot offer anything verifiable then chances are I will quickly decide not to buy your house.

Clearly this is legal but so is derivatives trading and bad debt swaps.

Matt, they did open on June 22, 2005, but the Atlanta real estate market was doing just fine at that time, the crash in Atlanta came in the wake of the mortgage backed derivatives meltdown that started with Lehman Brothers, Bear Stearns, WaMu and AIG mess.  

Then they use that to derive a cap-rate.

Banks were selling derivatives.

Ma'am,I would hire a good real estate agent and let them represent you to the bank.If you're not sure who owns the note on the house.do a title search and get all the information you need like how much is owed at this point.Then have the agent run comps to see what the home is worth as of now and after any repairs have been made.Arm yourself with complete information about the situation including your ability to get a loan by getting pre-qualified before your agent speaks to the bank.The bank officials are more apt to listen to your story if you have a pre-qualifying document that shows you are derived

@Sam Leon Property Taxes & Landlord licence fees (where applicable) are part of your operating expenses and as such are included in the derivation of Net Operating Income (NOI).I suspect @Doug McLeod was referring to income taxes - levied on your CFBT - in his post above.You should be alright.

Since cap rates are based on the NOI which is derived from the gross rents less operating expenses, both rents and operating expenses can be exagerated for the benefit of the selling party creating false 30% cap rates.

Although the Frauds Act requires that any contract for the sale of land be in writing, it contains no such requirement with regard to real estate brokers’ contracts of employment or the commissions derived from them.

This is based on the indexing concept (see tomveatch.com/re/indexing.html) derived from three foundations, the mathematical theorem from information theory on horse race betting, the informational theory of pricing, and a 50-50 valuation ratio between all stocks and all real estate, which was approximately true last time I calculated it.