It has an 8.5% cap rate and they just signed a 5 year lease. 

Mother in law suites shrink your buyers pool - a great asset for someone that is looking for that specific feature  - a deterrent to the other 95% of folk that would prefer not to have it.

Push the money into federal municipalities, state municipalities, and paying off your most profitable property in my opinion.Federal and state municipality funds are tax free investments, and mine perform in the 8-9% range, which means tax effective 11-12% range, equal to that of a decent cap return for real estate, plus they usually pay monthly.on top of that, the last thing the states and feds wont pay is their water, power, and sewage bills, hence why its a good steady flow of income.Also, it gives you three sources of solid residual income.

By including the cap and limitation that all originated mortgages must be under $150k the Bill basically says these folks are in no more danger of defaulting on a mortgage than they are of being evicted from a rental.  

If you want a 8-10% CAP don't fudge the numbers to make it work.  

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

The app is such a fantastic idea I hope it continues to get more and more features!

Don't know how things are in WA as to whether this is an acceptable cap rate.

The normal Cap Rate for the area is 7-8%.

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