I heard somewhere that if a borrower puts more down such as 5% the 4 unit cap is extended.

At a 50% expense ratio you have a 3.3% cap.

Cap rates in Santa Cruz and the surrounding Bay Area in general are horrible.

I found one that lends at the following terms: Interest Rate: 5-year FHLB + 3.00%, floor or 5.95% Adjusts every 5 yearsNo cap on rate adjustment (Note: Seems scary)Maturity: 20 yearsRequire 30% down.No prepayment penaltyI am wondering if anyone knows what has been the historical 5-year FHLB rate and any predictions on what it might be in 5, 10, and 15 years since the rate adjusts every 5 years.The no cap on rate adjustments is the scary part, but I guess I could prepay the loan if the rate goes crazy high.Does this look like a good options to secure long term financing if I've hit my 10 Fannie Mae loans already?

I understand for some jobs, it's difficult, however it's a good a idea to a cap in that case.Hope someone benefits from hit.Brandon, you are best, man.

.$280K$56K downP&I: $1200.00$2700 Total Rents - 50% rule = $1350.00 - $1200P&I = $150We've also broken the 50% rule down further with what we believe to be more accurate numbers:TAXES: $279INSURANCE: $279 (This is estimate as I wait to hear back from ins. agent)VACANCY 10%: $270REPAIRS/CAP EXP: $162PROP MANAGEMENT 10%: $270 (We'd be managing but have this built in for the future in case we didn't want to manage)Total: $1260.00$1260 + $1200 P&I = $2460.00Total Rent: $2700-$2460 = $240 cash flow.CAP RATE 6%GRM 12CASH on CASH 5%We realize that this isn't a great performer overall.

relatively new to the investing scene and the wholesaling thing both altogether, however wholesaling might be difficult in my area because I do not live around abandoned properties, nor are there none close to me.

Expenses -----> Cap rate, cash-on-cash....

Couldn't figure the cap rate on comps as they were all n/a.Regarding financing, we're considering using hard money for 18 months and refinancing the property conventionally to pay off the hard money loan.

If you can find or figure it, compare cap rates.