Check with a lawyer, but I'd strike that clause.

Your friend is only fighting to lose.If he were smart he would strike a deal with the sister knowing he legally does not have a case.

This sort of strikes me as "buying the airplane to get the peanuts". 

So, I had to strike an offer price keeping in mind cash flow needs from second year to meet atleast $150 per door.

I'm using NPV with a WaaC based on the financing ratio on the property (so I'll always have some cash down in this model).I've been using a general approach that evaluates the NPV and IRR over a 15 year time horizon, but also includes a requirement that the deal be reasonably profitable in a 5 year time horizon (giving me more exit options).For the deal we couldn't strike, the floor had to be replaced and the roof was going to need to be replaced by year 5.

6% strikes me as low for only 13 units.

@Ricardo Sandro -You may hear the term 'strike zone' being used by some hard money lenders.

If you want to pursue that option, focus your attention on small local banks that do commercial loans and try to strike up a banking relationship.

If you have the owners contact info I would strike up a conversation about selling.

So it really doesn’t matter if you go above or below then line in terms of establishing a strike price if you are underwriting to an IRR.On the other hand, cap rate is useful for estimating your exit price.