Many agents like myself, or @James Wise for instance actually have appraisers calling us to get our opinions on a properties value when they are doing an appraisal on another sale.

Its an embarrassment to the industry and they should be run out or fined for attempting to knowingly sell unsafe properties to unsuspecting consumers.Property inspectors are not always the best group either, but in this instance they discovered some real problems it sounds like...that's what they are paid to do...It's always best to do things right...it's your reputation on the line. 

For instance, an interest only loan 10% or more in California should be done through a broker to avoid running afoul of state law and DRE compliance.- Make sure you are getting a good Lender Title Insurance to secure your lien.  125% ALTA policies with no Western Regional Exceptions (also known as 2006 Extended Policy Coverage) are great for private bennies in California, and that may also be true of New York. 

For instance you are not including anything for Vacancy even though you indicate it has a current vacancy. 

Not sure why any PM would take that debacle on for instance. it would be a loser. 

In your specific instance insurance may not be needed to be considered properly capitalized. 

The SoloK, for instance, allows you to use a Saver’s Credit up to $2,000 ($4,000 if married/filing jointly).

It might make sense to partner with an experienced investor in this instance. 

So people always want to check because when people like yourself go over the limit and need a down payment anyways, I’ve seen instances where banks have funded them at 4.5% down and unnecessarily charged a way higher funding fee just because they didn’t know what they were doing.  

I would like to invest in Ohio, for instance but need a portfolio lender given the size of the loan(s) (under $40k).