In this post type of concern  I ask my circle of influence (bankers, insurance, contractors, fellow storage owners) their perspective on the economy and also their sphere of influence.  

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

At any time during the 48 month lease the property can be purchased.

Terms negotiable.Why Shaker Heights Short answer: Purchased under 70% ARV-Reno, Duplex (two rents), desirable clean neighborhood, decent schools.

Many investors make the mistake of assuming that a shorter PMA is better:( There's a reason purchase contracts have type so small you can barely read them, yet are 4-6+ pages.Reality is:1) Only if it's properly in writing, do they have to do it.2) If it's not in writing that they can't do it - they will and charge you for it.

There is the theoretical/mathematical way of doing things then there is the real world.Most deals are NOT going to be valued by cap rate, at least at purchase.  

Well, what if you purchased at a booming market, then it crashes?

However, none of them purchased it. 

Why do you think purchase contracts are so long and have such small print?

I have expanded one park but purchased 9 overall and I will tell you that you can get a much much better deal buying existing and scaling it.New parks are extremely time-demanding and take a lot of capital.