If you mismanage the property and revenue goes down and expenses go up then the cap rate goes down and the business is less valuable.If rents are below market rates and you increase them, or you have master metered utilities that can be submetered are some ways to change these variables influencing it.Hope that helps explain what it means and the economics.Where is your expense line items for vacancy (10%), management (5%), and capital improvements (5%)?  

It is hard to deduce the post tax number due to the number of factors that can influence a persons tax situation.

Some of my items are influenced by living in a hot, drought-ridden climate (southern california) and having things my children can get experience working on and be involved in the business.  

Philadelphia is a great city/region and I have been seeing a lot of great things happening not just in the real estate market, but also with the cultural influence and infrastructure of the region. 

On the other hand, regulations have have become increasingly biased against industrial companies4) Office comes in many shapes and sizes, but is getting influenced by technology and demographic factors.  

Also, what you chose to insure (Replacement Cost of building vs the Actual Cash Value or depreciated value) may influence what Insurance companies will be right for your properties.  

The cheap motel owners probably don't have enough money or influence the city and its regulations. 

Biggest mistake I see is landlords screening based on outside influences taking priority over the best interest of their business and other tenants.Many landlord are afraid to disqualify candidates because they fall under a protected classification.Many landlords do not understand that some of these protected classes are protected due to their historic bad reputation resulting in them having difficulty finding housing. 

My goals are too important to allow anyone to get in the way.you just have to push aside those negative influences even if they are family.We have to rise above and press forward.

Ideally on the private money side, we would love to rinse and repeat every 3 months with the same money with a 16-20% annualized return or better, but I did not want to influence the comments from this group.