If any short term financing, risk adjust upwards another 2% points on the interest rate.3.  

Wow and I thought I was old school!!

Typically, the adjustments I see on appraisals for basements are more flat rate adjustments. 10k is usually the number I've seen.What stinks is that there are a couple of model types that have below grade space where the builder, I'm sure, was trying to lower the taxes by having it below grade so the county wouldn't count that space in the assessment.

Quote from @John Warren: @Mordechai Chaimovitz cap rates and NOI are commercial real estate terms, and 1-4 units are not really valued in the same way.

However, other factors will matter, and the rates of taxation are different for different components of this Step 3 result.

What is the compelling reason for them to pick you, with your competitive rates, over someone else they've already been using with competitive rates? 

million in addition to their investors (who expect a reasonable rate of return) by keeping the rental rates at a fraction of the market rate?

If I purchased a home locally I’d have to ask well beyond the market rate on rent just to break even.

Is this expected since interest rates are high and listing prices are subsequently dropping? 

Quote from @Vikas Jain: Yes, I have already seen the buy-in, im less concerned about that part of it, but just want to make sure its legitimate (plenty of opportunities where buyin is high but it doesn't always mean the product is good, just been burned in the past by others so trying to do better due diligence this time around)Their success rate, as of now, is 100 percent.