Cap Rate?

I do not suggest buying it and renting it to him because then you'll be responsible for the 20-25% down + maintenance + cap X 5.

Therefore if you purchase in say September, your current years tax bill will be based on the current years value which may be even lower than what you can achieve with the exemption and on investments the value will be updated according to your ATI and will not be reassessed by the county for five years as well as once it is, the increase is capped to a 15% increase in value which is not common and can be appealed which is less often than many other states.Yes, the effective tax rate comes out to a difference of say 0.5% on personal residence to 3.0% on investments, but I would say handling it the right way up front and budgeting for it in your analysis is better than risking it another way.

The assets become difficult to operate as the price points are disproportionately impacted  by operating expenses and  cap ex.

Value $900,000; $600,000 debt, $200,000 basis; 7% sales commission, only him- mother is deceased- $250,000 cap gain tax free, $70,000 sales concessions or repairs, capital gain tax on $550,000 less costs,  etc etc.  2 out of 5 year rule, can he live in other buildings?

Does anyone have an idea of the average CAP rate (or a range) for larger apartment buildings in Price George's County or surrounding counties.  

Most lenders cap out at 75% and I know of a few that can go to 80 as long as the scenario checks a few boxes, but the majority of DSCR cash-outs stop at 75%.

I certainly won't hold anyone to anything, but could either of you venture a guess  as to what the actual net profit after all taxes (including cap gains, depreciation recapture, etc) would be on a 100k investment with total gross return of 193k on an income of 50k?

HOWEVER, for most investment property cash out programs you will be capped at 75% loan to value (the delayed financing piece does  not effect this loan to value max).

You have maintenance/cap ex, pm, vacancy, misc.