@Chris Pratt Since single-family houses with ADUs are not considered commercial properties, they are not priced based on income or cap rate.

@ Rich NgHave you had much trouble with section 8 over the years vs. your market rate tenants ?

The owner’s mortgage balance is $315K and they have an interest rate of 3.5% and the PITI is 2126.

This is because those who househacked actually pulled the trigger and started to gain experience while those looking for strictly an investment were too focused on numbers and returns to get their hand and feet wet.You can put little money down and take advantage of favorable rates. its a no brainer IMO 

@Don Miller I'm glad you enjoyed your visit to Cape Coral, Don.

I’m also using a 6% vacancy rate, which brings the net monthly cash flow to about $200 and a CoC return of 13.06%.Summary:I’ve created around $50k in equity (difference between ARV of $200k and total investment of $155k).I’ve got about $10k or $18,385 left in the deal (factoring in closing costs).The cash flow is healthy, and the CoC return is strong, especially as a first-time investor.Questions:Does anything look off or could I improve the numbers?

HI @Jaycee Greene, the current cap rate is 6.79%.

I always enjoy reading your posts.

Hi @Briley RoeNice to hear that you made the first step in investing.Looking at the deals, I would need more information, but per the data that you have, the Cap Rate is within a good acceptable amount.Cash on cash is low, but depending on the area that you are the appreciation will catch up.

If you are considering working with them, I strongly advise you to double-check the provided rates and terms carefully.During my loan process, I discovered that they had added a yield spread interest without informing me.