If you spend a lot on repairs for this property, it may count against you for future purchases.Wait...Honestly I stopped after 2 sentences in because I just realized you have other stuff that's just too much to do over BiggerPockets - there's just too many variables.

It's a variable rate, therefore as rents have gone up so has their fees collected.

If you are needing to use any type of variable production based income then the standard guideline requires us to use a 2 year average of that variable income. 

When you understand the variables that are utilized to derive the cap rate, you may find yourself using the cap rate to look at an investment in different ways.

There are so many variables that can eat into costs especially in the over promised MF class.  

He said he takes out about 10% for vacancy and 10% for repairs/CapEx (20% variable expenses total) -- he seems to be ignoring property management as well as being too low on repairs/CapEx.

. § 77a. et seq.) and the only investments of which fund areinstruments maturing in one year or less, or (2) deposit that money in a State or federallychartered bank, savings bank or savings and loan association in this State insured by an agencyof the federal government in an account bearing a variable rate of interest, which shall beestablished at least quarterly, which is similar to the average rate of interest on active interest bearing money market transaction accounts paid by the bank or association, or equal to similar accounts of an investment company described in paragraph (1) of this subsection.

That is why they want to go variable later in the term or even, more commonly, balloon the loan at 5 years.

Almost no one can predict the market since there are so many variables.

Too many variables to determine without better info and pics.