I wanted to share this spreadsheet with you in the hopes that you might be able to give me some input or maybe correct any misconceptions/miscalculations that may exist.

This post will be dedicated to destroying some of the common misconceptions about the housing market.

The common misconception I see here on BP is that a deposit is taken off your CC, when in fact it's only a hold on it.  

It is a common misconception that all commercial loans have short terms.  

I was listening to the BP podcast and Brandon mentioned that a lot of people have the misconception that people who flip houses also rehab them every time, but in actuality you don't need to rehab a house to flip it. 

The #1 misconception I see from new investors is this idea that "I want to know what the nicest parts of town are so that I will only buy properties there".  

This great article attests that most people have a huge misconception of Cleveland until they visit and see all the great things the city and surrounding areas have to offer. 

There are many posts here on BP that reflect this line of thinking such as:- "my minimum cap rate is 10%, I wouldn't even look at a property with cap rate below 10%"- "I'm going to buy this property, do some value add, increase the cap rate, and sell it for a profit"This is a misconception because cap rate is NOT necessarily a measure of profitability, it is a measure of desirability of the property.

For some reason everyone has this misconception that PM's are just praying for tenants to vacate so they can make all this money on the turnover.

BP was it for me (courtesy of Bob Bowling of course).I have learned enough from Bob to have a solid grasp of Cap Rates, also enough to be amazed at how much misconceptions, misuse, and abuse of Cap Rates are still out there.