My experience has been, as have other investor friends I know in San Francisco, is that the asset will double in value in 12-15 years. 

I didn't get my money's worth from MFM.Update: Nov 2024- they have restructured their program to have 3 paths: acquisition, capital raise, or underwriting - and have a 12-class program for you to follow for each path (what happened to asset management??).

But you have to understand the seller is taking on a significant risk of having someone else run the property and not knowing if they will get the final payout.If you are getting typical rates, why would you not just buy the property outright with 20% down and obtain mortgage financing from a lender?

@Hal RobertsThe biggest challenge is obtaining accurate and current data, such as demographics, job growth, and most importantly, rental data.

How can one obtain finance to flip a property in London; what are the options?.

@Michael Izbotsky In community property states like California, assets acquired during marriage are typically owned equally by both spouses, which may complicate transferring jointly owned property into your sole-member LLC.

I wouldn't budge on lowering the rent because that devalues your asset. 

Buyers may be backing out for failure to obtain financing for the deal.

When I did my deals with them they only loaned on the asset and low LTV that is how you got such good rates..

you'd have to break it down to some like for like comparisons to come up with a more "general caprate for a specific asset class" or something like that.