What is a cap rate and why is it useful?

Ben, you dont need a CPA in Durham, you need a capable real estate savvy investor CPA and I would suggest you contact @Natalie Kolodij by PM and pay for her time to get these issues resolved for you.

For example, I just saw an 88-unit building for sale for $4M with a cap rate of just under 7%.

You are going from one unit to three units in one move, so in one day you tripled your chances of a cap-ex expense.

.- After doing a cap rate analysis, I feel the need to do CoC/IRR anyway to verify the result of the cap rate analysis.- I still need to do CoC analysis to make sure I’m cash flow positive.Now when you're getting into an investment initially and having to choose from a few similar properties I can see how you can use cap rate for comparison but when it comes to SFR's I'm not sure if cap rate is any better than the 1% rule (which is way simpler than cap rate).Incidentally, I just noticed Grant Cardone just posted about how important CoC is to him and how CoC had kept him out of trouble throughout his career. :-)Cheers...

They were originally proposing a ban on non-owner occupied rentals, and a cap on only running one short term rental from your primary residence.

Hello,I have heard that property owners have been hit with huge increases in their insurance on multifamily homes since a cap in rates was removed.

An escalation clause basically states "The offer is for $XXX,XXX but if another verifiable offer nets the seller more, this offer will increase to beat net by $XXXX up to a cap price of $XXX,XXX".

I do expect to get at least another $5-7K for an annual bonus plus tax returns.I'm open to look at any investment property, but ideally I'd like to purchase a Cape Cod vacation rental.

My other concern is water, if we let them use it I was thinking about a cap for the water bill but I have no idea what a good figure for that would be...The yard is very small and we inherited a lawn mower so I thought about just making that available for them.