Now is all Apple...

(By the way, I'm guessing your answer is still the same, just be sure to compare apples to apples)

You have to compare apples to apples.@ Curt:When you send an investor buyer properties, what due diligence do you have to support your numbers?

Apples and oranges.

I think the key is to know which areas are magnetizing people - know where they are running to and where they are running from, and why.In the Detroit area, this can vary a lot from city to city, and within the city itself, it varies block-to-block.

From what I have seen the market for these has not moved too much, maybe they're selling for a 7-8% cap now with 20% lower revenue (rent reductions, or more occupancy), versus a 5.5% or 6% cap before.I agree with economics fully, but there seems to be a group of large pools of money that like to plop their money in nice California apartments and live with a lower ROI.So if you have cash and can find a turn around situation for an apartment it seems like a good idea, but buying at market, I wouldn't do it.It is bad of me to compare the investments as it is apples to oranges, but I know what I'd do with my $$ in California...

Where I do need to be careful is things like utilities as those will mess up the 50% rule pretty quick and create an apples to oranges comparison.IMO, I don't know why anyone wouldn't take 30 year financing... the opportunity cost of tying up cash in equity versus reinvesting it right now is HUGE.

Compare A and B without points (apples to apples so to speak)A: 3.875% and $1076B: 3.975% and $3087.50Assuming these expenses are correct then you can see your answer right there.

It could very easily have an ARV of over $50,000 so you're really comparing apples to oranges.

It is not apples to apples, not even close, it usually just gives a rough number based on a per sq ft basis and does not take into account at all anything like a pool, upgrades, etc.