All else held equal they would take higher cap rate over lower cap rate, but they understand that moderate cashflow with strong long-term capital gains is very desirable because they can shelter the vast majority of their gain from ever being taxed.

That's where I think this analysis falls short of your intention to value the deal.I would recommend running the report based on fully rented value to determine potential cash flows and evaluate the deal based on purchase price/cap rate.

What is the cap rate for new construction multi family apartments in Kelowna BC?

Example: cap rate, etc.I normally shoot for an 8 to 12 year payback, with a 20 year loan amortization.This is based on the location/deal on hand.

@Adam BartlingI am not opposed to fighting taxes but also realize a county doesn’t care if your property will cash flow as if it’s commercial they may look at cap rates and cap rates exclude financing.

Hint: Cap Ex is not applicable to a single family house and it is not an actual expense.

We are finding that our HML will loan to 80%, but the refi is wanting to cap at 70-75%.

They underwrite the properties like a commercial deal (based on the pro-forma cap rate, even though its just a single family house).The appraised values in these neighborhoods I'm tracking are creeping up as these transactions close and create more recorded comps.

That said, I need to get with my agent and figure out the appropriate wording to send to the seller to get them to agree to increasing the concession that they previously approved (up to the closing cost as cap).

Expenses: $1200 mortgage (taxes/insurance included) ( 20% down which is $28K, $112 financed at 6.5%), $170 PM fee, $170 cap-ex reserve.