(ex. if you have a property that cash flows 200/m or 2400/yr and you have 20,000 of your own money in the property, then the property COC would be 2400/20000 or .12) a 12% return, the multiplication of 100 just removes the decimal point. so you would make 12% a year on that money you personally put into the property. 

@Toby BergstromWell true, but I was thinking more like some super killer spreadsheets in combination with the math, with some added extra decimal points...

@Eric Schleif, yes the 2.5 points on the re-fi mortgage will increase my APR couple of decimal percent, however, the 2.5 points on the Hard Money loan take my APR from 10 to 20%.

Assumption 1:  If the tenants pay their own utilities the expense ratio should be around 30% (in a well run park)Assumption 2:  if the owner pays the utilities the expense ratio should be around 40% (in a well run park)Assumption 3:  Do math for a 10 Cap-it works for any Cap rate you choose including  positive or negative*************************************************************************************************************************Net operating income=gross income - expenses Using the expense ration of 30%  => Net Operating Income*(1-expense ratio)=> NOI*(1-.3)Therefore:NOI/yr=(#lot)*(rent per lot per month)*(12 month per year)*(1-expense ratio)Cap Rate=NOI/Purchase pricedo some 8th grade algebra followed by some 6th grade math (dividing with a decimal)Purchase price=NOI/Cap rateTherefore:Purchase price{tenants pay utility}={#lots*Monthly Rent*12*(1-.3)}/0.1 =>84* lots * rentPurchase Price {owner pays utilities}={#lots*monthy rent*12*(1-.4)}/0.1 =>72*lots*rentThere are the 72/84 numbers derivedIts not rocket surgery.  

True, but an underwriter will be BLIND to that fact IMO :)   The Hurricane Andrew cut clear across the Florida peninsula from East to West and decimated Holmstead and all else. 

The Affordable Care Act decimated my business and in one fell swoop, I found out how quickly life could change.    

Rents are expensive by comparison as opposed to other areas of the county and even then, RTV here still hovers around the .5% give or take two decimal points, depending on the area of town.

Weights are decimal numbers that add up to 1 across all comps (eg: comp 1 weight is 0.5, comp 2 is 0.2, comp 3 is 0.3).  6.

The GP in fact, DID rent the Apts but was pocketing the Rents.By the time that the Limited Partners won their case, the Attorneys took so much money that their Principal was decimated.

We lost his money on one, and while it didn't hurt the family dynamic, my wife and I hear about it from time to time (the latest being that he is still burning through his losses on his taxes, since he doesn't have enough passive income/gains to use the whole loss yet).Stories I have heard: there are families that have been completely decimated by going into business together, and there are families that have run successful multi-generational businesses.