This is certainly text book and absolutely the proper way to analyze a deal.Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously. 

Your dad's cost basis for the portion of the property he now owns outright (his life estate portion plus the remaindership portion he received back from your brother) would likely be based on the value of the property at the time it was originally transferred to both you and your brother.

This property is ideally located in northeast Colorado Springs with easy access to military bases, shopping, dining and entertainment.

You don't know what a good property is because you are basing it off metrics from a couple of years ago or the one percent rule.

@Chris Hutchens based on previous comments it looks that you're looking to acquire long term rentals.

Also, if the highest bid doesn't match your minimal price to make a profit - well, you're under no obligation to "sell to the highest bidder" (even though that's what your ad promises?

They shouldn't be allowed to issue Rules that clearly state one thing, then issue violations based on another, without explanation. 

I like @Christopher Phillips idea- surely a local bank would extend a line of credit to you based on the equity.

This is why many people buy real estate within an entity (LLC) and only buy 1 property per LLC or a few based on their value/equity. 

People getting CC numbers from dark web and booking through our site or another platform.