You can not find that out by looking solely at the cap rate.this may mean that you have to adjust your expectations about how much of a return you can get, or that you need to find a different city to invest in or different financing strategy, but at the end of the day, its the return that matters and the cap rate will simply not tell you that.The cap rate is little more than a sales marketing tool.

I simply implied that the lower income areas do not appreciate like the better neighborhoods do.I am glad to hear that you stay clear of the crack dealer neighborhoods.

would the end buyer in this case cut him a separate check for the 8K and the exercise the option to buy it at the 212K ?

I do not buy properties in war zones.If you're simply talking about a low income area, that's a different story.

I only do this for 30 year fixed interest loans.For 7% interest I use the factor 0.00665For 8% interest I use the factor 0.00733You simply multiply the loan amount times the interest rate factor.

The problem with Berber carpet is that tenants (or their cats) will snag it and they are too STUPID (the tenants, not the cats) to cut the snag with scissors (even if told in advance to do that).

Most bleeding heart nationalists would simply say: "Then get the hell out."

He says you can simply sign a "purchase agreement" with a buyer giving you principle interest in the property, find a rel estate agent, have them list the property on the MLS for more than what your purchase price, and sell, keeping the profit.

I was simply talking about a software were you can input some figures and it will do the rest (I know how to use the calucator) thank everyone for there input.

SFR - Appraise value 64,000 note 45,000 @ 7.5% 30 yr fixed P&I = $314 current rents $600 Under Option 1 if I simply pull 35K out of SFR 1 and leave other notes standing, my total monthly payments would be near $800 Option 2 with different bank 1.