As you can see cap rate is a valuation metric that are used in valuing 5-or more unit properties.I also like to add that cap rate is often used (i.e. incorrectly IMO) as a performance measure.

I don't know if implementing shared-economy exchange with smaller assets such as car, bike, scooter, etc are worth the time relative to other things I could be doing in real estate, but I'm looking forward to being proven incorrect by Al Williamson!

I think (not sure) this is incorrect.

Originally, I was going to pick “This would all depend on your investing strategies, and how much leverage you use” but I did not want to indicate that “leverage” (as in borrowing) is the key to get you there… It is the leverage of knowledge more so than borrowing… Debt leverage is a good way to destroy what you have built, if done incorrectly.

Appraisers usually don't care about dirty dishes, clothes scattered about or if they just ran the sweeper that day (but they do care about the condition of the carpet of course).Appraisers tend to be more conservative if they don't see the inside...but if the interior shows leaking roofs, damaged walls, out of date fixtures, incorrect outlets, flooring in disrepair, etc....then a Drive By may be best if your Lender approves it.Your lender may also have a reduced LTV based on the Appraisal Type, so make sure that they are not only OK with a drive by, but what "hits" will you be taking on the %LTV, Rate, etc. if any.To answer your questions though, Full Appraisals usually create higher valuations if your property is in good condition than Drive By.

@James Heinz I think the biggest cause for disparity between assess value and market is the fact that in older communities the subject property is often incorrectly reflected in the tax record.

HI @Oskar PlasenciaI think the terms are often used incorrectly.

If that property is cash flow negative then they’re asking too much for the deal or your calculations may be incorrect?

Inflating values, deflating scopes of work, or other incorrect submission mistakes will only cost you time and potentially money in the long run.A lender cannot consider a deal unless the information is provided.

If that information was incorrect, I would like to see the proof.