Is this adequate earnings for the lender on this type of loan or am I still missing a component?

Here's an excerpt from Guide Note 14 of the Appraisal Institute: The Appraisal Institute text The Dictionary of Real Estate Appraisal, 5th Edition, includes the following in its entry for “market value”: The most widely accepted components of market value are incorporated in the following definition: The most probable price that the specified property interest should sell for in a competitive market after a reasonable exposure time, as of a specified date, in cash, or in terms equivalent to cash, under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for self-interest, and assuming that neither is under duress.

Just to quickly ask, are there any components that listing agents in particular need to focus on?

Carbon monoxide is a component of the exhaust from burning heating fuel.

The point is that this type of real estate development presents opportunities for investors.For a successful grocery business, for example, a residential component on the 2nd and 3rd floors with apartments with rental income potential would be a nice way to offset the risk of the business in the store at the street level.

looks like they have annual income at $7700, so about $3850 plus 142=$$4000 expenses, $3700 Net, before taxes...all based on normal speculation...assumes minimal upfront repairs, no major components about to fail, and no unusually bad tenants.

This understanding helps mitigate the "luck" component of a first investment and helps set you up for more success on your next one.

The #1 issue I have with appreciation investors is the fact that a significant component of your model is built on on a forecast (housing price movements) that no one can predict and the average investor is not going to be wise enough to pick the right areas and houses for appreciation (look no further than 2008-2010 period).

You may never do any of the work yourself, but being able to visualize a component and have a rough idea what it should cost and how it is installed can be invaluable.

Having a retail component certainly makes this a more challenging transaction since you have to do a good job with both asset classes in order to succeed.