@Jay Hinrichs I used 2% more as a euphemism for good cash flow properties, most that I see as cash flowing in B areas with reasonable assumptions round to 2% but are not 2% (1.6%, 1.7%, etc.) so I should have clarified and are not sold by turnkey companies.  

Assumption deals are usually offered because the seller has yield maintenance and can't pay off the loan and it's too early to economically defease.  

If those 2 assumptions are true, then the balloon doesn't have to be scary.Let's say you have a commercial property consisting of 10-units (apartments, retail, whatever, just think in general terms for now).  

This is a client of a fellow agent but my assumption is that there would be full disclosure.

I'm under the assumption that you will have to dip out of work during the day to meet the seller and buyer to complete the double closing at a title company?

Now here's my analysis using your market rate rent assumptions.... a very good deal IMO.BTW the $500 insurance is a total guess on my part.Asking Price: $74,000.00Purchase Price: $66,600.0025% Down Payment: $16,650.00APR: 5%Revenues Rental Income: $27,516.0010% Vacancy: -$2,751.60Gross Income: $24,764.40Expenses Property Taxes: -$3,897.00Insurance: -$500.0010% Maintenance & Repairs: -$2,751.6010% Capital Expenditure: -$2,751.6010% Property Mgmt: -$2,751.60Total Expenses: -$12,651.80NOI: $12,112.60Mortgage (P&I only): $3,217.71Cashflow: $8,894.89Cash on Cash Return: 31.79%Cashflow per door per month: $247

The rationale behind these rules was a congressional assumption that certain transactions between certain parties are inherently suspicious and should be disallowed.

Actually your assumption would not be correct.

That's another 10k to play with.I'm making assumptions here, you probably should check with a realtor and see what your expected ARV (after repair value) will be.

Now with current rate the same or lower than existing mortgages, lenders have much less incentive to call a performing loan.I think Bill Gulley mentioned that he has done hundreds of loan assumptions and has never had one called.