Who knows where rates could be when the 5th year of you having the same fixed rate will be before it adjusts.

Then use various ratios like rent to unit price and adjust for your area.  

Mine is 15.92% IRR while you indicated Frank gets 16.17% IRR.It's not that far off and I bet the numbers are a little different because Frank maybe adjusting the Closing Costs a little bit down because the Price is lower.

Let me know if you would make any adjustments to the way that I am calculating this. 

Pick different potentials in the same investment market...run the numbers before and have a list of what you need to know or look at, then run the numbers after...depending on the property and intent use one of the calculators on this site for every one...work it as and then use the tool to calculate what it would need to be  --  if they are the same then it might be the right deal.Once you have this then you can move to other surrounding markets easier...just make sure you adjust your assumptions to align with that market.One final note and this depends on your area, here in FL you have to account for what your property taxes "will be" not what they are. 

Adjusted called and I gave as much info as possible.

I've seen 20 year loans, I've seen 10 year loans, I've seen Adjustable rate mortgages, I've seen prepayment penalties. 

So adjust repair expenses to compensate for the higher price.Also, in an expensice market I like to focus on areas of good appreciation coupled with good rent growth.

If you link your AdWords account to your Analytics you can see how each competitor's traffic performs and make adjustments from there. 

The same guy who has it under contract was confident that we could adjust the closing back a little bit if needed.So we'll keep taking steps forward and see if the deal falls apart along the way or if it all comes together in the end.Mike