I found a 3-unit property for $629K on the west side of Chicago (Wicker Park area) that will cash flow.Issue is that the foundation is settling and will need to have a significant amount of work done according to the sellers agent and the inspection that they had.

Henry the returns were 12 to 17% depending on amount invested and how long you locked up. the other thing that this fund invested in was  defunct brick and motor like radio shack  stien mart etc with the idea that they were going to turn those old name brands into  on line sales .

Proof of claim reserves any rights you have; if you have a lease with the tenant your “claim’ is the amount of future rent owed on the lease.  

For instance, even if a property has excellent characteristics, it may not rent if there is a significant amount of traffic on the street.

Quote from @Greg Parker: I suppose it depends on the amount of the EM. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

This would amount to about 4-5% of US residents and of a demographic which disproportionately rents multi-family and also SFRs not owns.

This is the difference between the loan amount and the purchase price.

The capital loss would be calculated as the difference between your original investment amount and the amount you received back (in this case, 10% of your principal).

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.