Why won't people tell the truth in their ads?

Question

Man I get so PO'd when I read Realtor and seller ads, either in the paper or on Craigslist. I just saw another glaring example this mornings or an agent/investor selling 4 rental units with the following (paraphrased) ad;

"Great investment property with 8% CAP RATE". Investor selling 4 rentals with with $900/ month rent on each. Sales price of $540,000. This is a great cap rate of 8%!

First off in the body he had written that 2 of the units were rented for $50 less per month "because the tenants had been there a long time" So right there the 8% isn't right for that sales price-it would have to $15K less for it make 8%.

In the second place he's using GROSS numbers! And this is in TX where you can figure 3% for property tax and another 3/4% for a Fire and EC policy. So figure at least $4K/year for tax and insurance/per unit. So taking the NET rent per unit (before vacancies and repairs), down to $6800. The price that would bring at an 8% cap rate is only $85K, a long way from the $135K the buyer is asking.

Be careful out there noobies!

all cash

Account Closed · Answer

I looked at the local REI site and found their listings. I called about one ad. It was listed as agent/owner, and being on thie REI list, I expected a deal. 
The house is in an area I'm vaguely familiar with, but the price is way above the houses I've read the listings of. Not a bargain, to me, anyway.

Frank Adams · Answer

Actually I thought they DID have to mention it in ANY advertising. I guess my cynicism radar has been goo enough at picking up on agent talk (and "investor" talk too) that I don't even contact the ones that look suspiciously like agents.

Heck on the "cars and trucks" section of CL you can eliminate "dealers" on your search.

all cash

N/A N/A · Answer

I'm just sick of realtors posting ads on Craigslist and forgetting to mention they are realtors.  I reply to an ad then get hounded for weeks with tons of emails listing every house for sale in the state.  I'm looking to go direct to the seller, I would appreciate if I could be told a realtor posted the ad.  They should have to mention that by law, that would be nice.