It is going for 109,000 I want to try and get it for 90,000.Monthly gross rent-$1650Expenses Tax-264 a monthWater- 100 per month estimatedHeats-100 per month estimated insurance-100 per month estimatedvacancy-115.50 (7%)Capex 82.50 (5%)Repairs 148.50 (9%)Management 165 (10%) P&I 386.51Garbage 50 per month estimatedTotal 1,511.68 Monthly Cash flor 138.32COC- 6.64% Pro Forma cap rate-4.84%purchase cap rate- 7%2% rule 1.70I don't know if the seller would accept 90,000 but its a smaller place needing updating and has been on the market for about 130 days.

As with many people, it would be incredible to potentially form a relationship with someone that could eventually turn into some form of a partnership. 

@Chuck Kautz If you buy on credit, that means you'll have financing - the note itself is a form a of litigation deterrent as there will be little to collect in case of a judgment forcing you to sell.

Once you have this information, you should be able to form a better idea of if this is a good purchase.  

Taking a loan for $2.2MThe model is not complete and I need input on the pro-forma tab where I calculate from Revenue to Income.

Is it best to build business credit to use business cards as a form a of a down payment on closing costs in escrow?

MF pricing is based on cash flow soThe price will be based off (most likely) a pro forma that puffs up rent and lowers costs.  

Sellers' pro-formas are almost always laughably wrong.

To get true comparisons you'll have to pro forma against leverage to see where you're ROI could be in a leveraged situation.

I don't know of too many commercial lenders that will accept a 28% operating budget for all expenses, they will probably run their debt-coverage test at their pro forma operating expense numbers instead.