I would only underwrite based on actual rents not proforma.

@German Fernandez Love those options!

👋My name is Anthony, and I’m an investor based in East Hartford, Connecticut.

I have a Florida based lender who helped prior clients of mine from Canada with their commercial real estate purchase.

Based on purchase TODAY, 7.5% mortgage rate, 25% down, normal rents, what would it come out end of day as.

@Steve Vaughan  when we went through the 08 to 2010 debacle and over 200 landlords handed me back their houses.. and lost ALL their money... it was an eye opener and they were all landlords all west coast based   a few on east coast.but they walked..  

Don't be so quick to indebt your paid off townhome until your learn creative financing and review all your options.

And if you base an offer price on that, you'll likely have an extremely difficult time getting any traction. 

Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

We are based in Long Island NY but invest in the Mid-West.