Your uncle passed away and left you $10 million with the stipulation that it be invested in real estate in the next 90 days. As word of your newfound wealth leaked into the real estate brokerage community, a line of brokers formed outside your door. Al Appraise comes into your office. You gotta buy this apartment building Im selling. It's 4.5 cap, but you can leverage your investment at an interest rate of 3.5% and control a lot more property! Not only that, but at only $200,000/unit, its terrific. You couldnt build it for that. Comparable condos on the same block are for sale for $300,000/unit. You really shouldnt worry about Rent Control or TOPA regulations in this city, its not a problem. Al left your office with no further advice. What are the practical and theoretical weaknesses in the investment/valuation methodology of Al Appraise?