@Josh MilewskiJosh, the principal metric used to measure the amount of leverage (Loans) that can be placed on a deal is the Debt Service Coverage Ratio (DSCR).The easiest way to understand this factor is that the lender wants to know how much net operating income (NOI) is available to service the debt (principal and interest payments).A good rule of thumb is to look for no less than a 1.20 DSCR.

I don't have a way to measure STR vs.

My response is not in the spirit of the new year festivities, and for that I apologize.Be careful how you measure "affordable" bookkeeping.

Hopefully prior to the start of the year you had put in some goals that you can measure to track your progress.

The lease says: LL at sole discretion will take pest control measures for up to 60 days.

That said, if we're looking at a long term loan, like 30 years, then you're probably going to be right about COC > CAP.Back to the main topic, I would consider $35 to be within the margin of error for estimating cashflow, making COC an unreliable measure since it would only take $35 of error in estimating rent, repairs, vacancy, or anything else for it to be break even.

We close this week, so I can get in to measure. 

The amount of air leakage and thermal conductance/resistance (insulation) is far more important to the size of the system (measured in tonnage).

Also, I should point out that your official measurement of water consumption (feeling) won't hold up in any court. 

Originally posted by @Salvatore Spano: My investment in London is very safe, the property has been let continuously for the last 13 years, but I am not achieving more than 3.6% cap rate at present.Some things worth noting, Cap rate is not only a measurement of expected returns you can make, but it is also a measurement of risk.