Again, i used the percentage method as a first go round.  80x12x10 = $9,600So to sum up, my GSI calculation for the deal So based on my new #s, it looks like the purchase price should be around the $400k mark, not the $650k mark based on the provide cap rate.Now reviewing the pro forma #s in a rental calculator, this deal does cash flow (assuming 20%down and financing).   

Ergo, one needs many loans to gain a well rounded and more thorough knowledge of the ideas within the industry. 

I'll probably send out another round the owners and see if I get any bites.

(common in this area)Rounded a bit, this is $2283/month.IncomeUpper Unit = $1450 (realtor said a conservative estimate would be 15 but I think that this would be more accurate although it is not rented out yet.)Lower Unit = $1150 (leased for another 4 months)Total= 2600$Income-Expenses= $317To be safe I have always been told to have a security margin, usually 10% of the income in case of vacancies or other issues.$317-$260= $57Is this the correct way in analyzing this property?  

I work with many of my clients year round to determine this.

Year round average ~1600/month a side.

Not because your creating motivation with your mail, but because the potential seller may not be interested in selling when you send the first round, but in round 3 their situation may have changed and they are motivated now.

Right you are @Mark Allen, though I wouldn't recommend planning on appreciation in any market.I've had a few buyers and friends who want to be closer to Austin and get apartments in Georgetown or Round Rock, but every one I've known who has done that regretted it.

Try connecting with @Hannah Hammondshe is always working round the clock looking for deals and connecting with people...she may be able to find you something.  

If you guys meet on the 12th, I'll catch you the next round.