What are the big risks: Risk is reflected in the cap rate or return.

The owner wants 1,191,102for those properties.Incumbency summary.Mobile home park + park owned homes are free and clear.6 unit apartment - mtg balance $36,866 @ 6%duplex - free and clear.Vacant lot - free and clear.26 SFD as follows Price Mtge bal219 N Wash40,12733,430320 Oak40,61325,590720 Picher 25,34023,120730 Picher 29,07330,324732 Moffet 27,34728,929901 Roose 112,92036,866909 Connor20,92722,253920 Jackson25,74028,6191501 Valley22,86723,4891604 Minn 26,29321,4901718 Connor43,927clear1810 Pearl 47,38048,2491820 Wall 28,08025,9631823 Redbud127,790128,046312 E 19 12,00032,466318 E 19 9,000clear1902 Kentucky17,000clear <-2br burnout. 2115 Bird 48,04042,9052124 Adele13,393clear2224 Murphy29,69322,2532302 W 4 21,28021,4532540 E 12 128,790102,5502815 E 16 59,49245,5012903 Schiff32,86725,4464309 W 27 106,81098,7935796 Harrison62,700clearTotal Incumberances - $867,735Still working on comps data right now for SFDGross Financial Summary yearlyOverall CAP 15%Gross/Net income from Mobile Home Park - $379,451 / 165,243Gross/Net income from Homes - $178,113 / $133,840Seller SummarySeller is an older Gentleman looking to sell to purchase a Motel closer to where his Son lives.

Here are my estimated numbers:$5,000 capital improvement$50/mth or $600/year in additional cashflow$50/mth or $600/year in reduced gas billCash-on-cash return of 24% ($1200/$5000) Appreciation based on 8% cap rate is an additional $15kMy question is this: Why is no one making this upgrade/conversion?

Cap Rate if phenomenal with total rent a month for $3200 monthly. 

When was the last time we heard a podcast where the guest or host described how a recent deal worked where the cap rate is lower than the interest rate? 

I used $11,000 for repairs/cap. expense and get about a 9.5 cap.

Just make sure to sell it within the time limits to not have to pay cap gains!

The numbers look decent, with an estimated cap rate at 15% and monthly net profits at about $700.

It's a little confusing when this duplex was built....2007 or 1950, and it makes a difference because housing built in the last 15 years is exempt from the new AB1482 bill (rent cap/just cause law). 

For instance, say the value to sell is $500k, and the potential 10 year NNN lease rate is $5k/mo, making it a 12% cap rate.