The 2nd step is to do a residual analysis of the Project by taking its value and deducting everything BUT Land from that value (including an assumed development profit of ~25%).

we need to come up with a good idea of how to explain to people that the disposer isnt meant to just shove food down and only should be used for residual food that might pass through. 

These loans usually will be require a move-in ready property, residual income, and cash reserves. 

An additional note if he was manufacturing in the unit you may need to have it tested specially for meth residuals and may have to do a cleanup.

In the current market conditions I look for sponsors that have the following:experience in all parts of market cycleare acquiring large assets no less than 100 units a proven value add strategyoffering a true preferred return (7%-8%)a 70/30 or greater equity splitmonthly cashflow distributionsinvest along side their passive investorsrunning a 5 year business plan and have debt terms that exceed the length of the business plan( this will become important if you have to hold the asset longer than the initial business plan)assets located in markets with strong economic indicatorsTo piggyback off this reply, if one's goal is to achieve "financial freedom" by having residual monthly income, is investing passively in syndications a good route?

@Jaron WallingLicense You will work harder than you’ve ever worked in your life if you want to be a full-time successful agent,You will have less free time than you have ever had if your actually going to work as an agent and make money, Cold calls, door knocks, family and friends most likely won’t trust you at first with no experience Following up with leads, managing your database, sending comps, houses, driving more than you have ever driven in your life 😉Investing:If you don’t own or have a place get a house hack started, then you can see how a rental kind of works, fixing toilets etc, switching lights out changing flooring, duplex is always ideal.Then after that is running or if you have the capital now run market rents on a apartment complex or whatever you can afford, see the down payment plus taxes- all of expenses if the property is cash flowing from market rents sure thing, just as easy as it sounds 😂😂😂Don’t forget vacancy’sAnd rinse and repeat tell you have enough residual income that your comfortable with and you will never have to work for the man again!

If the monthly residual is more than 1% of the purchase price my investor would consider looking into the property further.

He is considering seller finance because he would like to give his wife some residual income.

If there's upside this might work but it seems pretty tight otherwise since the numbers above don't include any closing costs or residual cash flow to you. 

It's an upstairs unit in a quadplex so it should even get residual heat from the neighboring and below unit.