Cap rate could also be deceiving as rental income fluctuates due to several factors: market conditions, regulations, management/owner knowledge/experience, and others...If you are looking for a healthy cash on cash return, you would need 200-250bps of spread between the bank financing and going in cap.

I'm no expert when it comes to zoning regulations, but my understanding is that "RS" zones only allows for 1 dwelling per lot.

There are many short term markets that are decades old where you don't have to worry about the regulations and volatility of metro markets. 

Don't get me wrong, was great city to invest in (I'm a huge fan of the economic diversity in the Metro), however, both Minneapolis and Saint Paul are starting to put in regulations on tenant screening that are concerning to me.

Title - regulated by the state and based on the purchase price3. 

Secured transactions, creditors' rights, bankruptcy, securities regulation, federal tax and trusts and estates should be helpful courses.I did a summer with V&E but can't otherwise speak to Texas.Good luck.          

Doing some RE consulting for a client involved in a value-added industrial investment in Miss.Utility company quoting 65% markup on materials (25% for E&S, 20% for Minor Mat, 20% for Material Handling).Have never seen such a high markup even in unregulated private industry and generally utilities are highly regulated.I am thinking even IRS may have some regulation on how much maximum mark up on materical can be.Please help with your knowledge.

That would make sense but absent that, they have a duty to shareholders and the FDIC (Assuming they are FDIC regulated) to market the property for sale in a reasonable and logical manner.

We have a maximum allowable which aligns with our city regulations.

Does anyone know if there are particular regulations around this?