To me, unless you're buying stable institutional class assets, worrying about cap rate is largely a waste of time.Andrew

I just got Into a stable career and am looking to invest in the side.

He said in the appraisal that the market is stable.

Originally posted by @Matthew Paul:Originally posted by @Ed E.

W/O an offer, we normally can't get to any PnL and our offer would very much like to be based upon that unobtainable PnL - - catch-22.My back of the napkin analysis goes like this:GSI - Expenses = NOIExpenses ASSUMED to be 33-50% of GSINOI * 10 (an assumed GRM) is the MAX  purchase price to be offered.When we get the Sch-E for two years and the corresponding rent rolls, we can correct our assumptions and amend our offer via the contingency approval of both.

When I started 8 years ago people said 'you can't do that, the r/e mkt is terrible, nobody is buying houses!'

This is a stable, but poor neighborhood.  

@Mark Gallagher  how strict is PA on selling RE that you don't own.IE putting something under contract then advertising it like you own it on craigs list or e mail blast to your buyers lists.??? 

Others who know the region can weigh in here as well, but my impression is that the E-W roads tend to be less prone to major traffic problems than the N-S ones.

They don't own anything can be evicted for non payment of monthly rent or damage to the property.If they are not ready to buy by the time the option expires, you can have an option extension period with proper prior notice.HUD has some general lease option agreements: https://www.hudexchange.info/resources/documents/e...Also, BP has a top 10 list of documents needed for landlords.https://www.biggerpockets.com/renewsblog/2011/06/2...