A little more down, but no self sustainability requirement and less in mortgage insurance that can go away vs.

I'm reviewing an OM for a 12-unit Class A property and the T-6 annualized expenses has the property insurance at $7,068 ($589/unit), but the Broker's Year 1 pro-forma has the property insurance at $3k ($250/unit).  

Taxes/ year: $3,002,  Insurance: $1,573,  Trash/ year: $654,   Electric/ year (exterior lights): $420,   Water/ year: $1,200 sewer/ year: $1,500,   Spray for bugs/ prevention: $311/ year,    Lawn cutting/ year: $640,   Misc (furnace filters/ 9v batteries): $250I have gotten mixed reviews back from my colleagues when they go over these numbers with me.

Here are the numbers:Original Loan Amount: $ 42,700.00Loan Origination Date: 12/09/2013First Payment Due Date: 01/01/2014Last Payment Date: 9/27/2018Current Loan Balance: $ 41,802.77Current Interest Rate: 9.900%Current P&I Payment:$ 371.57Current Escrow Payment:$ 30.43Maturity Date:12/01/2043Term Remaining: 302Loan Type :CFDFMV: $87,500The WorkoutWe picked up this asset for $18,500 ( 44% of UPB)Expense Cost: $2000 (Includes, servicing, initial due diligence, forced place insurance, back taxes and misc)Contingency Fund $2,500All in Cost= $23,0008 Months of Payments = $2968Reinstatemet fee from borrower = $2000Total Income received $4968We sold this property after 1 year as a re-performer for $35,500 (Approximately 85% of UPB)$35,500 + $4968 = $40,468 Total ROI = 76%We're excited with how this one turned out and can't wait to see what we will do with our next one!

If you are paying for private mortgage insurance, the market may have helped you get out of it.I did some digging and the median home price in Salt Lake County has appreciated 31% since the beginning of 2016 (from 275k to 360k). 31%!

It provides an insurance policy of sorts against you dragging this process out by making a mistake.

That brings the NOI down to $21,1605) insurance looks low too.

The purpose of screening him is not only to determined if he is a trouble maker but is also to insure that when your present tenant leaves for any reason and you end up with him as  your only tenant he is fully qualified.

Is 0.75 multiply against what is charged for rent for the month or is multiply to the cash flow I get after I subtract all expenses such as insurance, taxes, and paying the existing home mortgage?

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.