Basically .. look at every assumption you are making and ask yourself "what can I do to confirm this?"

Any mistakes or assumptions can be costly. 

I do believe that the zero/low appreciation assumption is accurate.  

Of course, the bright side of this ratio is the (perhaps illegitimate) assumption that they must have efficient systems in place to deal with that number of properties.Option 2 is a fellow BP member (I won’t call him out but he was nice enough to offer using his name) who self manages properties in the area.

I do plan to re-run the numbers once I nail that part down, but for the purpose of this exercise, lets assumed 6.5%.Here is a break-down on my analysis based on asking price, estimates, and current assumptions: Here I ended up with 5.56% cap rate, 86% DCR, and a $4133 negative annual cash flow.

Are your assumptions realistic?

I made some general assumptions about taxes insurance and maint reserves.

Would I be correct in that assumption?

Your financial assumptions (cost of borrowed money) is going to play a HUGE role in how this gets structured and whether it is a deal or not for you.I hope this helps and wish you luck. 

An assumption I'll make to give you some numbers is the (1/1) renting for $650/mo.