Thanks everyone, I do not understand what 5% cap rate is. But that said, I thank Flu for remembering my daughter and her great idea.I should be out there Jan 8 to meet 1st grandchild. Plan on looking at areas only able to see on computer. The builder wants to have me sign a purchase agreement for 246.5k with a contingency to split the property into 2 lots. Claims he needs P.A. signed to take to city for written blessing on split,that will take him 5 days he says, then close in 40 days , all cash he says (why?) then he will give tenant 30 days to vacate. Tenant has no lease and is month to month @1495 and has no idea to my knowledge. I have a vacancy she can move in if need be. That said, I plan on getting a lawyer to review the P.A. and the closing paperwork. But this cash idea scares me , any ideas on how to do this and how to deal with tenant if this gets approved in 5 days (7)?

I can buy more here but do not want to deal with 800 mo tenants. Builder will put 2 500k homes up which will net him aprox 75k ea. I could do this but I would need to involve a bank and that is out of question. No more banks for me. So hopefully I will be a cash buyer out there in January. Motown