Quote from @Amanda O'Kelly: Has anyone used W2 Cap Capital for lending?

I am guessing in Muncie the cap rate is probably 8-12% cap rate so take the NOI and come up with a comparable cap rate to determine the value. 

The one percent and 2 percent rule ive never looked at ... cap rate is .. meh .. its there - what im most concerned with is the price of the home relative to comparables and cash on cash to start.   9)  I look  the other way if it is a multi unit that is not separately metered - thats always one of my criteria here in pgh as there are a lot of older homes and a good portion you wind up worrying about who will cover utilities.  

My goal is to scale up over the next few years and add another 10-20 doors.I ran across someone that is saying they are building quadplexes in the same town in Texas as my current rentals there, so I have some support system there.High level this is the idea on the deal:4 units constructed as 2 duplexes on one parcel.1250sqf 3/2/1 units$650k sale price, CME is $820k according to builder, will have a independent CME done if/as I move forward.Rent per unit is $1750 based on the other quad in the developmentBest guess at this point is about $16k/year cash flow at a 9.5% cap rate.Builder is a sister company of a established company in a related industry that has done "some" builds before but not a lot.

No broad cities cashflow great right now with managers, some look good on paper but they just have more costly hidden issues then the lower cap rate cities.

If you want to own a rental, buy one thats a 10 cap or higher with 20% down through commercial financing with a big bank.

Trying to get more votes, so I get a free BP ball cap. what we all do for free stuff. 

There is a % fee for withdrawing and/or closing, but that fee is capped at $250, so overall the fee structure seems reasonable to me.I'm not sure if I'm allowed to post the company's name here, so DM me and I can give you the name.

I'll add that for the cash option, you'd need 8-10% cap rate properties which, even in the Midwest, will likely be older Class C/B- product where there is greater risk of higher maintenance and delinquencies versus newer/nicer builds.

I would imagine you're capped at 70% LTV to make the DSCR work at whatever threshold that lender allows (typically 1.00x) or maybe it's a credit/FICO issue. 3% in origination also doesn't seem too far off depending on the loan amount.