Some points about me and this property:- it consists of four 1-bedroom apartments - rented to young professionals- this is B property in a B neighborhood - current rents are $2300 ($550x3 and one $650 - the $650 is the newest tenant and the apartments are identical - so it sounds like the rents can be increased in the other 3 upon lease expiration)- it's listed at $139,900 and has been on the market for about 3 months- my calculation on this property is based on full asking price and current rents- The COC ROI is misleading based on the way I did the inputs -- the only cash out of pocket will be closing costs which I've been quoted to be about $7000  out of pocket. 

I plan to hold for at least 5 years.This is an early-1900s home with three identical 2 Bed/1 Bath units.

Isn't there something in those online programs that require people to verify their own identity?

And last, how do you confirm the tenant's identity - at application or at lease signing?

@Simcha Davidian Our situations are identical.

There's too much identity theives out there to expose even one digit.I wonder if they'll last 10 years on that home. 10M is nothing to these guys, and no luxury cars?

. :)But get a second opinion anyways, overlays mean that not everyone calculates self employment income identically. 

If you put a conventional loan offer and VA loan offer that are otherwise identical in every other way in front of a seller in the Austin area, I would expect the conventional offer to win almost every time.

I actually just read an article to inform myself and it seems that banks use more than 1 method to determine the value of a property such as this one.1) They compare to other similar buildings2) They calculate how much it would cost to build an identical building3) They use the revenus and expenses (this method gives the lowest result)Perhaps my real estate agent was considering some of the other methods and took into account it's amazing location and the actual municipal valuation.

A checkbook IRA is nearly identical as an investment vehicle.