-Lastly, ask for the investment or seek confirmation of their current or future investment, bringing the conversation to a decisive point.You should be well versed with the details of the deal before talking to investors:● Understand the average median income in the area.● Be aware of the average rents in the market.● Familiarize yourself with comparable properties (comps).● Understand what needs to be done in terms of improvements or renovations.● Be knowledgeable about the internal rate of return (IRR) for the investment.● Determine the anticipated holding term for the property.● Know the initial capitalization rate (going-in cap).● Project the exit capitalization rate (exit cap).When facing objections while raising capital, it's important to dig deeper to understand the true underlying concerns.

If it is a month-to-month rental (or verbal, which is the same thing), then you have to give 30 days notice before making changes.I recommend you spend 3-6 months observing the tenant to confirm you want to keep them.

Rent is 2150 against a 1450 mortgage leaving me with 700 monthly revenue.20% of 700 goes to reserves which leaves 560 monthly net. 560 x 12 months = 6720.

but yes a house hack allows you to put down as low as 5% just make sure you have some reserves incase something goes haywire the first year 

Just a heads up.So you calculated out you need  $6 million worth of apartments to hit your goal.A commercial loan may require 20% to 30% down in cash, cash reserves, working capital, and closing costs.You will also need earnest money cash.The lender may also require certain repairs to be done Shortly after the loan is made.The lender may also require the Property to be stabilized as far as occupancy percentage is concerned, leaving little on the bone as far as sweat equity.Good Luck!

Can someone who has seen this before please confirm if the above is correct and am I missing anything or need to consider anything else. 

Did you get copies of their schedule E tax returns on this property to confirm their gross and net income?

I've talked with auction.com and another company about rediculous reserve prices on some properties.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

I currently utilize this strategy personally.I have a commercial line of credit that I practice pay check parking with.Pay check parking is the practice of parking all free cash flow that you bring in each month after you've set aside your cash reserves (emergency fund).