Of course they also consider repalcement value.I have worked more on hotels -- then apartments --but basic principal is same.This year I am getting into Apartments and Shopping Centers Financing.Yes --the cap rate is decided buy Lenders and Buyers --based on Supply and Demand-- Large Companies --such as Insurance Companies and Pension Funds buy --large properties and feel comfortable with 5 % Cap rate --on Hospitals , Office Buildings Leased to Large A+ credit corporation or Government -- For hotels we used 12 % cap rate --and apartments --7% to 10% --Yes -- We have to decide our own comfort level and niche --such as Grade A or C apartments --similar to some people likeIndependent Hotels and make good money as well as people who owned Comfort Suites or Holiday Inn Express --make same rate of return.

It's very non threatening and helps them to relax as we're talking as they realize I'm being straightforward.

Mike, that's a wonderful idea, and since we are only a short drive away, let's plan for a dinner after the holidays.

Jonatan Lopez Relax and contribute, you will find gold here.

#geez However, after sitting down with them all, I felt confident and much more relaxed to learn that they are on my side to the fullest.

I'm looking more to relax and connect with others in a comfortable setting (having a couple beers) and sharing stories on closing your first or 10th deal / landlord stories whether it be good or bad, or just ask questions to other investors for input or education.

We are still ahead of schedule but there is no reason to relax as we still need to find a plumber to start the plumbing.

But when interest rates rise this strategy can become costly and kill cash flow of a rental.I'm not an attorney, nor have I stayed at a Holiday Inn recently.

Any recommendations would be greatly appreciated.Happy Holidays!

Nice, I'm looking to do the same as well by the holidays.