Under what circumstance would vacancy decontrol with 7%+CPI per year allowable rent increase limit you unreasonably?

Take a drive in your target area and make notes of houses which show signs of neglect.

Remember this clause is to prevent people from biting off more than they can chew or neglecting to make the rehab as promised because they caught a better deal somewhere else.

@Joshua D Enos I totally get it, everyone has a varying ability to do that strategy based on their life circumstances. 

As stated you never allow tenants to do any work under any circumstances.

That's probably not what you wanted to hear, but it's a facts and circumstances based analysis that's not possible to answer from the information provided."

I had a situation recently where the tenant was brought on for us to manage by the owner, who neglected to get this information. 

Correspondingly, all business income taken from an LLC under similar circumstances is subject to self-employment taxes. 

Correspondingly, all business income taken from an LLC under similar circumstances is subject to self-employment taxes.Holding Properties When holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.

However, I agree with your assessment of that being one of, if not the best way to run cap rates, pending no other circumstances are surrounding the property that might not be accurately reflected.