Counties reassess property with significantly higher values annually, and local governments assume that they are entitled to a corresponding increase in spending.

In order to avoid discrimination you should have a set of minimum qualification standards for all applicants.

2% of what you borrowed is standard for a monthly payment.

Your rental criteria should be what the standard is kept to.Either they have a Soc Sec Number and qualify or they don't and don't qualify.You want to rent to someone that's not in compliance,, then that's up to you.Don't make things harder for yourself than what they should be.No experience renting to undocumented,, but lots in denying because of invalid Soc Sec #.. or none at all.

Additionally, with the City adopting the IBC 2015 and inspectors becoming increasingly difficult to work with, we've labor costs go up and soft cost on the design & engineering side go up as well.   

I am glad I was able to find that great price on the architectural shingles and my guys were able get it done quickly, I think it looks 100 times better than the 3 tab shingles and will increase the value even more. 

This should increase my cashflow overtime.

In fact many standard contracts do not even allow you to ask or kick out of a contract if it is under 4.0.

Here are the key data points:Park info  Located in Alabama61 lots25 owner occupied homes18 park owned homes (14 currently rented; 4 currently being repaired and should be rented soon)18 vacant lotsAvg lot rent - $160 (unknown what the market rate is but it doesn't sound like there has been a rent increase in at least a year, maybe more)Avg POH rent - $400Expense ratio - seller claims 26% but I'm estimating 35% for the lots and 50% for the POH'sCity water - individually meteredSeptic - good condition (allegedly); a couple were pumped last year, none this year (no lagoon thank heavens)Seller claims gross income $130k, expenses $30k, and NOI $100kI calculated gross income of ~$135k, expenses of $60k (55% on POH and 35% on lot rentals), and NOI of $75kOther infoMom & pop seller, but park is listed with a brokerPark has been on the market for > 3 years (recent price reduction)Greater metro area stats look goodPopulation = 115kMedian home price = $105kUnemployment < 8%Household income > $40kHousing vacancy ~ 15%Closest Walmart is 7 miles awayFreeway is 1.5 miles awayNumbersMy valuation is coming out about $80k-$100k under the seller's asking priceWith conventional financing I'd be hoping for a purchase price of $500k, $100k down @ 6% over 20 years (not sure if this is plausible or not)Assuming that financing, I'm expecting net cash flow of $40k (after debt service)Upside potential is in raising rent and filling the 18 vacant lotsFollowing the same assumptions above, raising rent $50 (if the market supports it) would change NOI to ~$90k and net cash flow of just over $50kFilling the vacant lots could potentially increase gross rent up to somewhere between $150k-$200k, depending on what the appropriate occupancy rate is for the areaWithout verifying any of the above information (haven't offered anything yet so there's a lot of DD left to do), the deal seems to make sense. 

Does anybody know what industry standards are here?