There are some exceptions that allow for pro-ration such as military orders and change in job location.1031 exchange isn't possible since thats only for investment property. 

So basically upgrade my $1m house to live in a $2m house for $0 extra It's really hard to make a rational argument to be a home owner vs. renter in SD. 

Again, that large of a cancellation fee is protection from slick owners - not rational investors.Good luck out there!  

You all will be glad to know that while more items have hit the fan since my initial post I have done well in giving an urgent yet rational response. 

No...and the rationalization of using your job income to pay for it makes no sense. 

Any feedback is appreciated on this one.Google drive link to full spreadsheet Cost and Revenue Assumptions List Price 550,000 Land 302,500 Building 247,500 Improvements 175,000 Closing Costs 4,000 Total 729,000 Number of Units 2 Average Monthly Rent 1,800 Other Income Gross Monthly Revenues 3,600 Operating Expenses Yr1 Electricity 0.3% 0 Insurance 11.9% 4,900 Water/Sewer/Garbage/ Electricity 3.9% 1,600 Property Taxes (On total value of property) 0.1% 6,086 Repairs and Maintenance 5.0% 2,052 CapEx 4.5% 1,850 Professional Fees 0.6% 360 Advertising 0.5% 210 Other 1.2% 0 Total Operating Expenses 11.8% 17,058 Expense Ratio 42% Net Operating Income 88.2% 23,982 Capitalization Rate 3.29% Operating Ration 58% Scenarios Gain on Sale Cap Rate Estimated Exit Price/ Gain On Sale - 1 Yr -4.7% (34,000) 5.50% Estimated Exit Price/ Gain On Sale - 2 Yr 0.1% 750 5.50% Estimated Exit Price/ Gain On Sale - 3 Yr 5.1% 37,238 5.50% Estimated Exit Price/ Gain On Sale - 5 Yr 10.4% 75,549 5.50%

Just document the numbers and give him a rational explanation of why the property is only worth what you are offering.

It's this attention to the exit, understanding what that may look like, when, how, and why, that is so important.None of the other metrics require you to rationalize your investment into the future all the way into the disposition. 

Those same things that it make it more likely to be able to get traditional financing, will make it less likely to be a good deal for the new real state investor (meaning, less likely to win the bidding war), since now you've got a rational calculating buyer facing competition from owner occupants buying on emotion.

The lady I deal with at the title company fills it in later once we have an official closing date and figure out the pro-rations.