If anyone would like to run their eyes over the attached report and poke holes in my assumptions I would appreciate it.

My initial projections based on a buy and hold analysis are:$1550 a month in income(Lots of assumptions here)$904.78 monthly expenses(Including maintenance, management, and the vacancy rate)$645.22 monthly cash flow23.45% pro forma Rate$9240 net operating incomex 50% for expenses equals $775Monthly interest/payment equals $124.78Total monthly cash flow using 50% rule equal $65082.90% cash on cash return on investment30.90% purchase cap rateTotal operating expense $780 dollars a monthAs I stated earlier, the house is close to downtown and the State University.

@David MoreheadBooks: Due Diligence Handbook (super important and often missed element of the underwriting process)The Real Estate Game: The Intelligent Guide To Decisionmaking And Investment (solid overview by an experienced operator)How to Create Lifetime Cash Flow Through Multifamily Properties (free, solid book)Articles:How to Avoid the Most Common Commercial Due Diligence MistakesDeal Screening Checklist for Passive Multifamily InvestorSpend time poking around the Internet + networking with local multifamily investors to understand how to underwrite and what assumptions to use. 

and it does not look like the right deal for me and my investing objectives.However, this is the first multi-unit I have seriously looked at and want to make sure I am making some of the correct assumptions; which are below.

This is my assumption It sounds like you may not trust your realtor and if thats the case I would say just make sure your solving the right problem. 

It is just an assumption though, so it's possible she hangs in there.

And if the deal is better than that standard/hurdle, the sponsors use ultra conservative assumptions to get back to standard and under-promise and over-deliver.My last three investments were in Bradenton FL (self-storage), Arlington TX (multifamily), and all over the country (MHP & SS fund).FYI...A going in 6 cap for an A or B class with a strong value add in a good location is a great deal.Hope that helps.

My assumption would be that the bank would still follow through on the foreclosure with the house itself but whoever buys the parcel of land at auction would have it without having to worry about the bank. 

You'll be losing money based on your assumptions

Hi Brian,Assuming this is a life insurance/agency loan, the loan documents should detail any loan assumption fees.