(gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo).

Assuming this is an 8 cap neighborhood you'd have a ~$420-450k value within a year (unless property taxes are crazy high) when leases would renew since it'd be valued as a commercial building with the office space.

I usually run several CMAs, with different criterial, and of course compare tax appraisal value with a wholesale price, add 5% as a fee to a transaction, in some cases.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

It's a good practice to overestimate costs and underestimate after-repair values (ARV) to keep your expectations realistic.

You are correct that putting 3.5% down on a fourplex likely won't cash flow after one year.

After sending millions I can state.  

Another lesson is to research companies online and in forums like this before you do business with them and if you decide to do business with someone, dip your toe in the water slowly and continue to research the company after you start working with them, because things can change quickly.I have some questions:1. 

Some properties appreciated double during this cycle and the rents still covered the mortgage after a cashout refi. 

Purchase price: $425,000 Cash invested: $5,000 ell after just 6 months of owning.