This is my favorite weekly feature.

3) Is there a cap to what we can set this interest rate to be (I've heard that you can't exceed whatever cap users laws would allow).

There is no cap that I am aware of regarding profit in a SDIRA deal, but if the SDIRA borrowed funds there may be taxation issues... that may be where the counsel's comments came from?

Keneeth what kind of cap rates do you tend to get in the Houston area? 

Egress.Fireplaces are fine but they are decorative in his type of multifamily, cap the chimneys either just to keep critters out or to close the fireplace use off.

You might look at Upstate CREIA for money sources.I personally think the price is high; I would base my purchase price off the lots paying no more than ~$15,000 p/lot and/or on lot rent only (~$200 x 6# x .70% OpExp / 10 CAP).

This is one of my favorite features of Bigger Pockets especially for asking specific questions.

We have a huge lack of 2-4 unit properties in the DC metro area, that this tight supply really increases the demand and pushed those prices up, and thus cap rates down on the properties.

I've been doing the same thing.I found this to be very helpful showing the cap rates for different investment classes, markets, and major cities.http://www.cbre.us/o/fortlauderdale/AssetLibrary/CapRate_H22014_Master%5B1%5D.pdfI also look at these 2 sites...http://www.areavibes.com/kansas+city-mo/neighborho...http://www.bestplaces.net/city/missouri/kansas_cit...

A) 5/1 ARM – 20-year Term; Up to 30-year AmortizationInterest Rate Options:1) L5 Resi Owner-Occupied 5/1 ARM No Point Rate + 1.00% + 1 point2) L5 Resi Owner-Occupied 5/1 ARM No Point Rate + 1.50% + 0 pointPresently: L5 Resi Owner-Occupied 5/1 ARM No Point Product is set at 2.50% therefore, the CML Non-Owner Occupied 5/1 ARM rate would be1) 2.50% +1.00% = 3.50% +1 point2) 2.50% +1.50% = 4.00% + 0 pointTerm: Max: 20 yearsAmortization: Up to 30 yearsFloor: The initial rate on the transaction will be established as the Floor rate for the life of the loan.Repricing: At the end of the initial 5-year period, the interest rate would reset to the then 1-year T-Bill Rate (Index) plus 325 basis points (margin)No prepayment penalties requiredInterest Rate Repricing Caps: 2% +/- at each change date; 5% +/- over life of the loanClosing fees: Utilize mortgage calculator fee scheduleStandard commercial real estate loan underwriting guidelines are required (i.e.