I asked her if she is taking steps to pay her debts down and she said she is working with a debt consolidation company to tackle it.  

It is held under an LLC.Property value 190k (for 2 lots next to each other - 1 for the house, the other is an approved building lot, however I use it for parking)Debt: 107k left on first mortgage 25 year term, 5% adjusts once every 5 years. 21 years 4 months left.20k left on seller's note 30 yr amortization, balloon payment at 8 years. (4 year 4 months to go!)

Just to be clear you will have to have adequate debt service coverage, usually 1.25 times the net operating income (not the rent) of the subject property.

The current owner is shopping it around for 1.35m (7cap) and the proforma numbers are as followed: ANNUALIZED INCOMEActual MarketGross Potential Rent $191,639 Less: Vacancy ($5,749) Effective Gross Income $185,890 Less: Expenses ($91,497) Net Operating Income $94,393 Debt Service ($65,592) Net Cash Flow after Debt Service $28,801 Principal Reduction $17,403Total Return $46,204 ANNUALIZED EXPENSESActual MarketProperty Management Fee $9,582 Replacement Reserves $5,250 Building Insurance $6,712 Maintenance $12,560 Taxes - Real Estate $36,296 (37220 w/o exception)Utility - Electricity $2,453 Utility - Gas $12,369Utility - Water/Sewer $6,275 Total Expenses $91,497 Expenses Per RSF $8.39 Expenses Per Unit $4,357I did some additional digging and found that they offer Wi-Fi for the building (I talked to a rep and said providing service for a building that size should run 285 a month) and the trash was left off which runs about 285/month.

I rarely wear a name tag nor distribute business cards.

If you make a mistake you could end up in second position with a large debt ahead of you.

Gross income - expenses - debt service costs = marginmargin / cash invested = COCR (cash on cash return).

John,you can not order them off the premises but,you can encourage them to go out to lunch or do errands while the inspection is taking place.Give them a written notice on exactly when you will arrive and depart the property and suggest they find something else to do because the inspection will be hectic and disruptive to them.Offer them a gift card to Olive Garden or something to pay for lunch.

It's not like a loan gets paid to the seller in installments over time or can be reversed like a credit card charge, once it's approved, the seller gets the full amount and it's sold, right?

I'm in the process of buying an apartment complex in PA with my partners (I'm looking at a 5 unit & 10 unit). The DSCR on buildings I'm looking at are below what most lenders will lend on (it ranges between .9 ~ 1...