If I buy a rental property utilizing a -subject to- strategy, with a loan 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!)

It's pointless→ I want to evaluate how the property is performing NOW→ Where it COULD BE performing→ And WHAT it will take to get there.This involves (at a minimum) checking comps, creating a 5 year proforma, verifying taxes & insurance, and making assumptions about the business plan.You can't determine if a deal is a pass/go simply from NOI / Cap Rate.The art of underwriting involves finding value where others miss.If you're passing on deals just from dividing the in-place NOI by a cap rate, send those over here!

Therefore, you anticipate it will be sold and you will get back your $10k.You can do several analysis with this NO APPRECIATION assumption.The normal way people do their Cash Flow Analysis is that they make the assumption that the Cash Flow NEVER changes.... by the way, this is a TERRIBLE assumption because it ALWAYS changes.The reason why they make that assumption is because they just don't know how to calculate with ease how to take into account fluctuating Cash Flows.In this snapshot, I have 2 Scenarios.

However, you are making the assumption that being nearby the property would somehow mitigate risk of not understanding market, tenant, property.

In my limited experience, the most successful people (those that I would want to mimic) don't run guru courses, because they are making more money from doing versus "teaching" others.And in this case, where their value proposition is the network, my assumption is you are going to be in with a lot of other beginners.  

There is usually always a reason for the way things are - more often than not people do not ask the simple “why” because they are too embarrassed, make assumptions, or simply prefer to ignore their knowledge gaps.

I guess I could assume that since someone is pitching this to you that your property/soil is right for it...but that's a pretty big assumption. 

Hi Michael,What is the assumption here in terms of the purchase price and downpayment?

My assumption is they are chasing people who got rich quick so they can sell the story.