If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

.- Comps support both acquisition and exit cap rate assumptions.

My assumption is that I wouldn't have to pay as the paydown is against the debt.

@Eliott Elias I’m curious what your experience was if you have done this before (which is an assumption from your post).

Any cash or other non-like-kind property received during the exchange will be subject to capital gains tax.To accurately determine the cost of the replacement property for tax purposes, it is important not to make any assumptions.

Some ideas would be to: Take a look at a market report for Pittsburgh and add a few percentage points to be conservative, Call around to multifamily brokers or property managers in the area and ask their vacancy rate, asks banks what their vacancy assumption is for underwriting, etc...

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

My plan is to contact them in effort to get them to sell the property based on the assumption that they are out of state or possibly out of country and the property looks like it is in a fixable condition. 

I assumed there was a moratorium on permits like Palm Springs, but that might be a bad assumption.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Our OPINION for the Metro Detroit market (always verify each area for yourself!)