It has all the usual suspects - large relocation fees if you don't renew a lease, fixed % of annual increase.I intentionally rent under market, but will be forced to immediately raise rents if rent control goes in place to protect the long term value.

The offer is $1M higher than the capital account we would get with the developer, although once up and full we would be in a better position than selling in our equity and annual income. 

I find that the price of a rental property in many markets is driven more by the annual rents then the rebuilding costs. 

Keep in mind, taxes increase with the new ownership and then they change (normally go up) annually.

.#5 Make Decisions Based on the NumbersYour real estate investing strategy should include the financial parameters by which you determine if a property is worth purchasing.Your strategy may include details about: Purchase price range.Investment cash needed for repairs and upgrades before leasing to tenants.Financing strategy for the short and long terms.Bargain purchase (the percent under fair market value a property must be purchased).Immediate value increase (the percent in increased value you expect after making initial repairs and upgrades).Geographic area.Net income.Cash flow.Net cap rate (annual net income/total value).When you find a potential investment property that fits within the guidelines of your real estate investment strategy, you can pull the trigger based on the numbers rather than emotions and personal preferences.#6 Don’t Buy from Unmotivated SellersMotivated sellers are usually willing to work with buyers, so focusing on finding motivated sellers can result in making great deals as a real estate investor.

You are going to have tenants over the age of 35 at some point.Michigan State University produce Landlord-Tenant Document annually, its a great resource.

If you're investing for 4-5 years, it helps weather any annual dips or big expenses.

Returns of 13.8% and Average Net Annual Cash Flow of 9%.

I make 45k annually and I have around 20k saved u.

With no down payment, this is a 25% annualized return for those 30 years.Do you guys see alternate terms to the deal?