The appraiser is there to determine fair cash value.

Commercial properties are not evaluated by "comps" (well not exactly) they are evaluated on cash flow.

If you care just about positive cash flow (and you don't care about population growth, macroeconomics, or appreciation), definitely go with Cleveland.

I am definitely conservative and plan to keep my job until the REI cash flow is proven for income.

- My first thought is offering cash, but the home owner would most likely just let it go to foreclosure because of how low the offer would be. - My second thought is offering some cash and taking over the loan - there are no liens on the property yet.

I have been leaning toward acquiring existing assets as new-build in my area is about as expensive as existing assets AND it takes years to spin up until cash begins to flow.   

I’m looking for small multi-family homes in the $150k-$250k range, focusing on property appreciation with minimal cash flow to build reserves.I’ve been considering areas like Fishtown, Somerton, Roxborough, Haverford, Conshohocken, West Norriton, Upper Darby, Lansdale, and Abington.

If you want to mitigate all risk, sell your real estate, and hide the cash under your pillow, and don’t get out of bed ever.

The structure will depend on the down payment, quality of borrower, terms of note, your cash out of the note sale needs, and other factors. 

My underwriting would have this large negative cash flow for 7 years.I would do a thorough underwriting but want to show using quick math the issue so I will use the 50% rule.