Other mistake: When Miyagi throws Mike into the light switches, the lights go out but the switches never change position.

The Karate Kid III (1989)
Ending / spoiler
Directed by: John G. Avildsen
Starring: Ralph Macchio, Pat Morita, Robyn Lively, Thomas Ian Griffith
Daniel goes to the Cobra Kai dojo to tell Silver that he won't enter the tournament, he then discovers that Silver is evil and that Kreese is still alive. Barnes is also there and they are about to beat Daniel to death when Miyagi saves him and wipes the floor with all three of the villains. Daniel defeats Barnes in the final of the tournament.
H.R.H. The King Of The Internet
Daniel Larusso: I know you don't believe in fighting, but tournament karate isn't exactly fighting.
Mr. Kesuke Miyagi: Not exactly ping-pong, either.
Trivia: The bonsai shop building in the film was torn down years ago, but the stairs outside still remain to this day.
Question: How did Kreese lose his dojo?
Answer: Kreese strangled Johnny, after the latter lost to Daniel. This proved just what kind of teacher, as well as person, Kreese is. His students after seeing this, realised just what Cobra Kai puts in their head, as well as just what kind of person and teacher Kreese is. Specifically, after seeing Kreese strangle Johnny, they thought, "I WON'T be your student, if you're gonna treat me like that!" Therefore, they left, and Cobra Kai went out of business.
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Answer: He lost all his students after he flipped out on Johnny. Without students, he couldn't pay his bills.
Greg Dwyer