Stress-test your worst-case assumptions (other than the zombie apocalypse, which no one can predict).

You can make sure assumptions based on the condition of the neighborhood and outside condition but there is always a wild card involved. 

That’s just my assumption and it holds no water.For the estoppels, I was hoping they would fill them out but I understand they are not obligated by the agreement and there is not a amendment adding the estoppels in our agreement.We do have a signed TOP addendum so I’m glad that kind of helps the situation which I was not aware of so thank you again for bringing that to my attention.Yes, it would be ideal to get new leases signed under my terms after I take ownership of the property.

My apologies, I shouldn't make assumptions.

Assumptions: Lowest Appraisal Loan INCOME AND RATE OF RETURN Purchase Price 154,900.00 Loan Amount 123,920.00 Down Payment 30,980.00 Estimated Annnual Gross Rents 15,540.00 Estimated Annual Equity Paydown 1,700.18 Estimated Annual Principal & Interest ($8,350.19) Estimated Annual Property Taxes ($3,000.00) Estimated Annual Homeowners Insurance ($746.78) Estimated Annual HOA Dues $0.00 Estimated Annual Management Fees ($1,877.75) Utility costs to be paid by landlord (if any) Annual $0.00 Lawn mainteannce costs to be paid by landlord (if any) Annual $0.00 Indirect Vacancy Allowance Annual ($) ($155.40) Repair Allowance Annual ($) ($621.60) Misc. bucket for costs per month Annual ($60.00) Estimated Annual Net Expenses ($14,811.72) SUMMARY OF RETURNS Estimated Annual Gross Income $2,428.46 Estimated Monthly Gross Income $202.37 Estimated Annual Gross ROI 7.84% ESTIMATE OF CASH FLOW Loan Amount 123,920.00 Interest Rate 5.40% Loan Term in Months 360 Estimated Principal & Interest ($695.85) Estimated Monthly Taxes ($250.00) Estimated Monthly Homeowners Insurance ($62.23) Estimated Monthly HOA Dues $0.00 Estimated Monthly - MISC ($69.75) Estimated Monthly Management Fees ($156.48) SUMMARY OF CASH FLOW Estimated Monthly Gross Cash Flow $60.69

I guess my first incorrect assumption was that this llc would be treated as a disregarded entity just as a single member llc was. 

I usually run an 8% assumption on vacancy.Capex and Repairs at 7% are probably ok, although if you are putting $35k into repairs upfront you may have lower Capex and repairs on the unit for the first 5+ years.  

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

I am under the assumption that you need a full 12 months of the income and expenses to accurately break down a deal to see if it is a good or bad one.

Complex topic that would require pages of email but your assumption is not correct.