Originally posted by @Bob Bowling:Originally posted by @Riley F.

thanks for sharing @Bob CraneThis was my key take below.

@Bob Razler appreciate that insight!

Bob Okenwa & Aaron Klatt do you guys have any idea roughly on how much this costs and if it would even be worth the money?

Mahalo  from Bob, a Honolulu real estate expert.

Hey @Bob E. , how has things been going at the unit since the purchase?

Thanks Bob!

Originally posted by @Bob E.

@Bob Bowling - you can't buy unless you can plan exit, and if you are conservative enough, then you'll be wrong in the right direction :)

. - let me translate what @Bob Bowling said :)Cap Rate is not a good metric of return, but if you use it as such, it uses the NOI (Net Operating Income) as the basis:NOI = Gross Potential Income - Operating Costs (operating costs do not include the debt service).So - the $36,000/annum of presumed CF is the wrong figure to use in a valuation formula since this includes the debt service:Cap Rate = NOI / Value = ($36,000 + Annual Debt Service) / Purchase PriceNow - to Bob's second comment as to why does it matter if Cap Rate really is 2.5%What Bob is likely talking about is that if you buy a building at 10 Cap, force the NOI up by 20%, and turn around and sell at 10 Cap, you will make money in the delta.