If the market does adjust you will be ready and can be more selective. 

This amount will need to be then adjusted by the building value. 

It's a bit of manual work to setup but once you're done it's just plugging numbers and confirming calculations.Mike

Adjust percentages to how you feel.

I've used Xero before and it saves a ton of time having direct bank-feeds over manual uploads. 

You can then adjust expenses based on a few factors:  does LL pay utilities or tenants? 

Tax adjustments, water adjustments, oil adjustments (if applicable), attorney fees (if attorney state), transfer tax (if state requires), concessions can happen sometimes.

I would generally give them 30-60 days notice regarding new rent increase so that the tenants can adjust to the rent hike.

They were willing to lend that way but at a commercial rate = 5.25% adjustable with a 5 yr balloon.  

If you're already in negotiations with the 1st, ask them how much they will allocate to the 2nd mortgage then adjust your HUD accordingly and get everything submitted to the 2nd for review.