If i understand correctly, the seasoned investor that I have been speaking to informed me to think of the escrow account as the "middle man" where I pay my mortgage and bills for the house. 

Also, there's usually a  minimum debt service coverage ration; it varies from 1.1x - 1.25x.

Just document the numbers and give him a rational explanation of why the property is only worth what you are offering.

That's rationalizing...and will lead to trouble. 

:) Golden Rule #2:  Never, under any circumstances, for any reason or rationalization, ever...forget Golden Rule #1.

We as humans tend to over complicate things and rationalize it in our minds as needed steps to achieve a goal and its just not so.

If you try to rationalize the facts of it a fixed loan has little to no rationale. 

Any feedback is appreciated on this one.Google drive link to full spreadsheet Cost and Revenue Assumptions List Price 550,000 Land 302,500 Building 247,500 Improvements 175,000 Closing Costs 4,000 Total 729,000 Number of Units 2 Average Monthly Rent 1,800 Other Income Gross Monthly Revenues 3,600 Operating Expenses Yr1 Electricity 0.3% 0 Insurance 11.9% 4,900 Water/Sewer/Garbage/ Electricity 3.9% 1,600 Property Taxes (On total value of property) 0.1% 6,086 Repairs and Maintenance 5.0% 2,052 CapEx 4.5% 1,850 Professional Fees 0.6% 360 Advertising 0.5% 210 Other 1.2% 0 Total Operating Expenses 11.8% 17,058 Expense Ratio 42% Net Operating Income 88.2% 23,982 Capitalization Rate 3.29% Operating Ration 58% Scenarios Gain on Sale Cap Rate Estimated Exit Price/ Gain On Sale - 1 Yr -4.7% (34,000) 5.50% Estimated Exit Price/ Gain On Sale - 2 Yr 0.1% 750 5.50% Estimated Exit Price/ Gain On Sale - 3 Yr 5.1% 37,238 5.50% Estimated Exit Price/ Gain On Sale - 5 Yr 10.4% 75,549 5.50%

The title to the property will be in the name of the trust and as trustee you will be able to advance the funds, sign all the documents and thus you will eliminate the 'middle man', reduce the operation cost and be in total control. 

At the end of the day, the last thing I want is to be the middle man between investors and their bottom line - no thanks.I would/will be class A when it finally comes to that.