I am wondering if certain expenses should be factored into these calculations.Specifically If I plan to put aside cash reserves at the purchase of a property (6x monthly carry costs) should I include that in my cap rate calculation?  

When I worked with the public, the first question I asked was "tell me about your situation" because if there wasn't a motivating factor in that answer I was off the phone in under a minute. 

As beautiful as Denver and Boulder are, they present the same challenges for investors that the coastal markets in California do.  

An average 4 person family might use anywhere from 3000 to 10000 gallons per month, depending on a lot of factors.

The financed portion of the gain would be subject to what is called the Unrelated Business Income Tax or UBIT.Unrelated Business Income Tax (UBIT)In most cases, people hold investment properties in their IRA for the income stream, not for flipping, so the UBIT is not typically a factor.

Obviously, people will always need a place to stay, but they might not necessarily need luxury vacations when times are hard.Still, all things considered and all other factors remaining the same....

If so, is that factored in to your numbers?  

I'm not sure what the management and maintenance fees you have factored in are.

I have seen plenty of hones with beautiful hardwood floors that were covered with carpeting as well.

@Patrick Connell I think it's a combination of several factors leading me to the conclusion I either 1.