I ran these numbers on my last deal and it came in the ballpark of eating 5% in the year of reset and thats with a stable interest rate environment.

It all depends on the operator, the project and current rate environment and what the investors are getting from banks etc. could be as much as 10-12 if rates were higher. 

Far better than anything else out there.But thats assuming that you are buying at a traditional discount that most investors look for (i.e. 70 to 75% LTV), and that the house cash flows from Day 1 $200 a month or more.And I would guess that environment exists in about 70% of the areas out there.

I grew up in a country and culture where you can trust almost everyone.My upbringing strongly emphasized ethics, kindness and generosity as the most important personal attributes.American culture seems to support notions that greed is good and its like a competition of who can claw their way to them top at the peril of others.I have tried to adapt but I have no intention to stay in this sterile, cold and dangerous environment long term. 

-Vacancies: I work hard to create an environment that people enjoy living in so I have very little vacancies.

In my experience lenders hardly ever notice and wont push the issue until interest rates start going up...people will sell subject to so that the buyer can stay with a low fixed rate  when the rate environment is higher.

Talk to the experts to understand how things work and what's best for your environment. 

Note: The group maintains a positive, supportive environment - no trolls allowed :)

But there is never a perfect environment to invest.

In today's environment it makes sense to think defensively.