Located in a high-demand area with strong rental and purchase potential, this project is poised for success.

Located in a high-demand area with strong rental and purchase potential, this project is poised for success.

Hi Michael,You have pretty much all of your bases covered! 

-based income.

Renovated with cosmetic updates for immediate rental income, it offers strong cash flow while preparing for more extensive repairs and the addition of an ADU.

If so, then it could get messy.  5% down is conventional so I don't think it would show on an appraisal, in that case you could work on doing an escrow holdback i.e. the seller holds a certain $ in escrow with the title company based on the quotes you receive. 

I would recommend checking out the BP calculators and basing your spreadsheet on that.

Based on 1. above determine the maximum amount your willing to pay to avoid a lawsuit and the realistic “target” amount you’d want to pay given what you learned from the attorney consultation3.

DSCR loans also allow real estate investors to secure financing based on property cash flow rather than personal income, which simplifies the application process!

You need to answer all the above questions, then identify a course of action based on those answers, and then place those actions into the three categories above.