He either he agrees with you or loses you as a buyer.Now, of course, you will calculate your numbers at a 'nice to have' point as well as a 'drop dead' point.

That's your security.If I am lending someone money for a property, you bet there's a deed of trust.

However, it doesn't look to me like you've included the operating expenses in your calculation.

Expenses should always be calculated at 50%, remember maybe this year they will be lower but at a point you'll need to change major items like roof furnace a/c etc etc etc If you buy a house for 100k it needs to pay 2k in rents every month, simple as that.Let's say you have 100k in cash, you use 60k to buy a house that is really worth 100k and it rents for 1200$ (2% of 60k) and cashflows 150$ a month, your net worth has just jumped to 140k, your monthly income has just increased by 1800$/year.

Commercial is always based on location.If a Wal-Mart, Lowes, Home Depot, Target, etc come into town you can bet that the value of the land is going to go up.The improvements to the property will go up with inflation because the cost of a 2x4 goes up so the cost to build or rebuild the improvement will go up because of this.Now when an area runs out of land that can be developed then the prices of land in that area sky rocket if it's desirable land.

I bet it is less than $100 unless they stocked up on frozen meat.

Im willing to bet responses would go up.

You must include that in your calculations and buy cheap enough to make the numbers work.Mike

Your best bet is to find one that is, and stick with them.

As I recall, you don't include all the expenses in your calculations, which is why you come out less than 50%.