If I did my math correctly, on a 3,600 SF triplex where you buy the land for $150k, you generate a gross profit of about $84k (based on a $140/sf build cost and sale price of $205/sf), before you pay interest on any borrowed funds or closing/commission costs.

You certainly have to do your homework with this company.

Nearly everything you mentioned here clearly and emphatically says you have tons of homework to do.

But show them the math.  

I will do some homework first, before ask follow up questions:)

I guess it boils down to finding out if I can qualify for a lower-interest loan with a traditional bank/credit union, and if not, making sure the math still works with a higher-interest loan.

Yes - include ALL expenses in your math, including reserves for repairs/maint, capex, turnover, etc.

Enodo (Multi-Family investors, developers and asset managers) its just math 6.

This can change the math pretty quickly.

On Page 134, he lists the following when analyzing a deal:Sales Price: $132,490.00Sales Expenses: $17,000.00Loan Balance: $55,004.72Total Invested Capital: $35,950.00Profit: $24,535.28I agree with his thought process here when he calculates net profit, but I'm trying to verify the net profit by adding up all the sources of income over the past five years in his example by doing the following:Appreciation over five years=$12,490 (see chart on Page 133).Cash flow ($297.73x12x5)=$17,863.80 over five years.Loan paydown: ($60,000-55,004.72)=$4,995.28 over five years.Sales Expenses are still $17,000.Doing the math, profit= $12,490+$17,863.80+$4,995.28-$17,000=$18,349.08There is a $6,186.20 difference from the net profit he calculates.My question is: Is this $6,186.20 difference due to the forced appreciation gained in the property from the rehab he does in this example?