Much better than CD's, but not exactly stellar for a risky, high-hassle real estate deal.Both calculations are saying this is an OK, but not great, deal at the price you're wanting to pay.I don't doubt you can get financing below 6%, but I do doubt you can get it for 10% down.

First, these properties are often in less-than-stellar shape.

You can ask the agent but I think you may get less than stellar service even if the agent agrees to do that.

Benefits: As mentioned, the major benefit of portfolio lending is that (sometimes) the financial requirements on the borrower can be relaxed a bit, allowing borrowers with less than stellar credit or low income to qualify for loans.

Here is how I see this deal: Rent: $9600/month (100% occupancy) Less vacancy of 15% (Guessing) AGI = 8,160 Expenses: $4080 (based on 50% OE ratio, could be higher) NOI: $4080 monthly 14.19 Cap rate at ask price (very good) P&I: $1829 $258,750 @ 7% 25 year ammortization Cash flow: $2251 Cash flow: $140 per unit per month COC = 28.1% (very good) DSCR = 2.23 (Stellar and bank approved) Now lets borrow the 25% down at 8%, 25 year amm.

I could see that this would definatly be a great idea if you have not so stellar credit, am I correct or not?

Could be a stellar property but I somehow doubt it.  

We recently debuted our FixNFlip Advantage across our entire lending area.

A seller of an seasoned loan, like a seller of anything else, always wants the highest best price and believes 'their' asset is of high, stellar value.

.- I guess what I'm not clear about is since they have such a stellar reputation, and I met and talked with a ton of their investors just a week ago, why they presented me with this questionable property and it doesn't seem to measure up?