Even though the application of a cap rate on future income is improper, if you are determined to apply the 3% spread rule, you might find a lot of success if you apply that rule to capitalized income upon stabilization. 

It would also be good to get some recommendations from fellow BP Members.A good test question to ask your future property management is to ask them the questions about the smoke detectors/placement.

I'm investing in real estate for the future, and hopefully for my kids' future. 

Don't know if you ever want to deal with that in the near future.

Hiring a PM at this level isn't too efficient, but it allows you to set a standard of what to expect from your PM (if you decide to get one in the future to manage your large portfolio;) 2) Great for learning the rehab.

The other very real option you have and one that will circumvent any future looming bubble is that you could consider refinancing.

If you did decide you still wanted more protection you could place the lease under an LLC, in that the property is under your name but the Tenant is dealing with and interacting with the LLC which is on the Lease, in essence if they sue due to any management mishaps they would be suing the managing LLC and it would give you some protection of which if they got through that then you would fall back on your second line of protection, your insurance - this would also let your LLC season and position it to buy property in the future.

If you do great with your first few deals, you'll have the room to stretch and risk a bit on your future deals.

It had me thinking about the future of the profession.

Hi Alexander,I'm by no mean an expert, actually closer to the opposite, but I wanted to congratulate you on your project, I hope to follow behind you in the near future.