Alex, one of the key assumptions your blog friend makes about dividend growth investing is the past track record of rising dividends will continue.

@ Chris Martin, would you say that step 1 essentially involves an assumption of the mortgage?

I'm under the assumption that a property being sold with a 30yr old roof in need of replacement would be valued (or even assessed) at a lower amount than the same exact property that just had a 30yr roof done?

You get in for less than an assumption or an assignment might be.Bob 

IE the market sees a REO, so the assumption is its a deal no matter how absurd the price.

Here's the low down:250 Units, Evansville, IN | Class C+/B- AssetAcquisition and Assumption of Existing Debt (35yr Amort at 2.93%) + Mezzanine Note + Equity of about ~23% Equity Raise: ~3.1 Million (our own cash + limited investors as well).Plan: achieve cash on cash returns in the mid teens (going in 8.55%), IRR of 15%+ and 2.25x over a 7 year hold.

Here's the low down:250 Units, Evansville, IN | Class C+/B- AssetAcquisition and Assumption of Existing Debt (35yr Amort at 2.93%) + Mezzanine Note + Equity of about ~23% Equity Raise: ~3.1 Million (our own cash + limited investors as well).Plan: achieve cash on cash returns in the mid teens (going in 8.55%), IRR of 15%+ and 2.25x over a 7 year hold.

It's important to do modeling and run sensitivity analysis to stress test your assumptions.  

I asked the seller to refi. for the purchase price subject to one-time qualified assumption with release of liability.

I'm requesting sales and net income for the past 10 years to confirm this assumption.