Potential difficulty replacing the tenant.  

Cap rates offer a valuation based on a single year's NOI, while discount rates consider the property's entire income-generating potential over a specified period.

However, we keep coming back to the potential that the best first deal actually lies in a property that my mom owns in San Diego.

This way, outside of appreciation, when you pull it out in a few years you could potentially get even more out of it.There are so many ways to approach it, but if your goal is offset the monthly and interest rates, and it helps you purchase sooner rather than later, cool.

The company HQ is in the SF Bay Area, this potential project is up near Lake Tahoe. 

I feel like this potential deal structure is different from most which is why I'm seeking more advice/wisdom. 

its a big pain in the butt to coordinate showings with tenants and you dont want to burn out or piss your tenants off by inconveniencing them with potential buyers who maybe just kicking tires..

Again I like Buffalo potentially.

I like the idea of sellers doing their own pre-inspection prior to listing and sharing that with potential buyers, and I’ve recommended that to sellers before.

I was reading the book "Real Estate by the numbers", the part on EV, and I was wondering on how to calculate the EV when I do not know the probabilities/percentages of each outcome happening, can you give me an example on EV with a rental unit please?