They are brokering real estate so make them PROVIDE good quality information like you could get from a licensed broker.

A good TK provider should be showing maintenance and vacancy numbers well under 10% - these numbers reflect the quality of the location, rehab work, tenant selection, and general management, so you should be inquiring about the actual figures to ensure you can accurately gauge the quality of the provider.You should also incorporate numbers for insurance and taxes, as well as your mortgage payments, of course.

He was extremely behind on schedule, work quality was sub par, and worst of all he never pulled the proper permits and the project was shut down back in October.

I would also think a more 'blue collar' demographic with more 600- 650+ FICO score 'potential buyers' (used to renting, thinking they needed an 800 credit score and/ or 20% down, to 'buy') with only a few grand to put down and little or no prior knowledge of their ability to 'rent to own' would be optimal to 'pre- quality' through a mortgage lender, as well as (re)educate people that there are also good reasons to 'rent to own,' aside from getting into a house to 'build equity.'

Especially if the flooring contractor does quality work.

Quality Title ...Joe Rojas

Often older houses from the 60's or 70's were built with better quality materials than in newer houses.

If retail is something that you want to pursue, increasing quality ($ of house) and quantity (# of transactions) gets you there. 

Imo if you want a high quality of tenant you offer a high quality product 

The other thing typically priced into that CAP rate by the market is the risk and quality, consistency, and volatility of the NOI ... you can see this in any given city where the CAP rate will increase for commercial properties that are older, more run down, and in the rougher side of town where collecting that NOI may be harder and less consistent.