I never underwrite using the CAP rate ... in fact, the only time I have any curiosity about the CAP rate is when I am thinking about selling a property (and am trying to determine how much someone will pay).CAP rate is a dangerously misused metric which is far to frequently batted about as though it has significance beyond being the inverse of a P/E ratio for a business/property at a point in time.

Dependent on local law and your Rental Agreement, Tenants are not typically responsible for failures beyond their control, but are responsible for intentional damage and possibly misuse (this will vary depending on local Court standards).

In the right hands it works great, misuse the tool and bad news.If you had the choice of 20 properties debt free or 20 properties with mortgages which would you take.

I would simply point out AT the inspection that he will be responsible for the cost to repair damage caused by misuse.

look again. tho, i do misuse caps on internet… i capped 4 words & p.s. … cos of spam. thnx fir your help & time

The Ellis Act is one of the most misused and abused protections by landlords to circumvent tenant protections.

I am in Gainesville and although it's not that far I just don't want to engage with these systems and then have to foot a high bill because the tenant misused them.

NOI and Sale/Value/Purchase price), as you have found, there's too much misconceptions, misuse and even abuse.

@Ian don't try to game the game with the VA loan, mortgage fraud is no joke, and misusing the benefit is a surefire way to make the restrictions worse for veterans.That being said, why not buy a duplex/triplex with the VA loan, do some work to it (or buy with the VA renovation loan)...rent out the other units so you get to live for free, and then sell if in a year.The VA won't approve a property that needs enough work to be a solid flip regardless...the VA renovation loan might, but similar occupancy rules apply.

AGAIN- BRRR is not overrated, but perhaps misused.