Understand the underlying assumptions of the underwriting (rent growth, revenue increases,  comps, exit cap), and ask all the questions you can.Above all else, do your homework on who you invest with.

And when I moved here my first assumption was that Hazel Green was too rural or just too far out to get good rents.I learned within the first year managing properties in all the surrounding areas that I was very mistaken.

Your entire example is based on an assumption that is factually wrong.2) You are not looking for "distressed properties".

Hi @Josh Walker,Your lender local to Detroit must be using some homeowner's insurance premium "shouldn't come in higher than..." assumption(s) to qualify people because HOI is part of DTI.

Also when you’re looking at the Norada deal the front page only shows the basic numbers when you click the analyze this button it will take you to the page where you can add in the assumptions for vacancy and also the mortgage . 

From the same article:"When you closed your VA loan, you may have signed a VA Guaranteed Loan and Assumption Policy Rider.

@Ricardo Serrano this copy & paste info may help...Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

There will also be many unknowns that you can plan for or build a cushion if an assumption is wrong.

From 2000 - 2002 I was syndicating mortgage loans as fractionalized and I was proceeding under the assumption that a debt was NOT a security.  

I am almost done with the rehab and I am considering a few options.The comps on the property have been around 190k but I feel this property isn’t quite as good as the comps I could find so I’m running with the assumption of getting about 175k.1.