You should be setting aside an amount equal to or greater than is in a reserve account somewhere for each unit you own.My point is that folks purchasing 30k homes in bad parts of town typically do not account for these costs when calculating their "cap rate" or cash-on-cash returns.

We don't really want to sell it but cap rates have compressed in that market so much over the last six months that testing the market is a prudent thing to do.

But if your property has a high-end kitchen and the other one doesn't, an appraiser might add $10k back and value yours at $110k.You might try to get your hands on a few appraisals to learn how appraisers value a property and add/subtract value based on features, square footage, and fixtures/finish.While I'm sure this varies wildly, I've found that some realtors rely too heavily on automated comps or CMAs when valuing properties, and these can be off by a wide margin.

The cap rate, cash flow, and other calculations strongly depend on how I treat the money I’ll be saving in rent.

Its always the same profile of seller ... purchased in around 2011 for well below rebuild, repositioned and trying to get top cap rate on proformas.

so do i do 2800 *12 / 10% cap rate?

Too bad Maverick doesn't feature any properties in Pittsburgh!

What areas do you think are growing or have a particular feature attracting residents (particularly young married couples with no children)?

This area is a C neighborhood with cap rates around 1.5%.PLEASE PLEASE show the calculations that resulted in a 1.5% cap rate!!!!!!!!!!!!!!!

I'm a newbie and still trying to wrap my mind around CoC & Cap rates.