How are they underwriting the deal and what assumptions are they using and are they conservative or aggressive?

@Chris Seveney,Thank you for the quick response and the clarification on VA loan assumptions.

My assumption has been DSCR is the main driver, coming from my institutional experience (larger deals) we usually target a 1.2 and over DSCR.

So you are putting in various inputs/assumptions, like gross revenue (total sales prices of homes) less soft costs, hard costs, city fees, desired profit margin (i.e. 15% of gross revenue) = residual value (what the land is worth).

@Sudheer Kumar - we can help here but need to better understand the Refinance out of the loan assumption better.  

My assumption is that when negotiating the purchase of the property I would have to pay off the mortgage, or would I be able to Pay off the taxes and maybe provide the current owner with some cash and then work with the bank on the mortgage?

I see this is posted in the house-hack forum so I'll make the assumption that you want to owner-occupy your next investment.To work more hands-on, you'll want to spend time searching for deals, analyzing deals, and networking/building a team.Before your property search, I'd recommend speaking with a lender to find out how much you'll qualify for.

If that house does not Aline with where you want to be in 5 years don't do it and don't buy its off assumptions that may or may not happen.

Assuming the cap rate for the area is around 5%, by my math, it would get you to ~$427k . my other assumption is a financing rate of around 4% and even with a 10% bump in rents you would just breakeven.

Otherwise, I'd take another look at the assumptions you're making / share the income and expenses here for folks to take a look at.hope this helps