Over a year $200 on a $35-40K gross is nothing, yet over and over LLs want to "set a cap" vs screening for good guests/tenants instead. 

Quote from @Clayton Plummer: @Rob JoonIn your previous comment you said that Saugatuck city has a STR cap, but it was in its infancy.The township does not have a cap though? 

@Scott TrenchThe distressed office market offers a "Blood in the Water" opportunity to invest in suburban office space, with a cap rate of 10-12% and a growing demand for shorter commutes.

You already have this, its called being a shareholder of a company and a cap table. 2.

Your building is at a cap rate of 9.28%.

I would do a cap rate evaluation and try to achieve close to a 8-cap after all expenses. 

I would probably put a cap on the size of the tank. 

I don't have experience with renting to a sober living company, but I assume that they make a killing.These sober living and assisted living facilities are always showing up on Loopnet advertised at a cap rate of anywhere from 8-25% (not exaggerating... there are several in my area right now with a ~20% advertised cap rate)With returns like this, I can only assume that these types of properties are very high maintenance and labor intensive.You're not looking to be the business manager though, you are just looking to be the landlord who leases to the company who runs one of these lucrative operations.

I would consider putting that into a renewal lease if you do not have a cap built in.

@Jeff Fortuna@Dan Rowley I am getting 8.5 percent cash flow that is about 60 percent tax free from the mag syndication with a cap gain coming when they start selling properties.