After you factor in HOA dues (if any), property management, vacancy, maintenance and capex, I think you may be lucky to net $20/month in cash flow.

Is anyone doing both purchasing/brokering discounted notes and factoring? 

From CBRE | 2016 Global Real Estate Market Outlook“Moderate economic growth with low interest rates, punctuated with bouts of pessimism and volatility—the factors that have characterized the world economy for the past few years—are likely to continue in 2016, supporting moderate growth in commercial rents and investment sales volume globally.”

You are forgetting to factor in basic repairs, capital expenditures, vacancy, etc..

In other words, if 3 people are equal partners in an LLC, the lender can use one of those people to determine their risk factor?

Factoring in self maintenance (eating/showering/gym/shower/caring for dog/ect), thats another 3-4 hoursI went to a local REI networking event recently and marketing for properties was talked about.  

When you get a buyer Their bank will require an appraisal and that will be the deciding factor as to price.

Perhaps they are suggesting that deferred maintenance is not always factored in, or something else.  

@Sean GrapevineAm I understanding your post correctly when you say that the borrower can use the Fannie Mae 1025 form to factor in potential rental income when calculating the borrower's DTI when applying for a mortgage?

, but i ran the numbers and after that it didn't look so appealing, and if you were to factor in capital gains and other fun government taxes, well, i don't think it's a good option, and there are for sure better ways to exit.The numbers play out like this (not considering taxes, capital gains, and other factors, i was just trying to play around with the idea and keep it simple for the start):Your NOI: ($119,160 + $30,000)  - $70,000 = $79,160 or $2638.67 per year for 30 years and $219.89 per month for 30 years when you factor in the 30% down into it ($137 per month for 30 years)Cap Rate: 2633/70,000 = 3.76% per year for 30 yearsCash flow: $331 per month for 30 years but only $137 of that would be profitROI: 2.33% without the 30% down factored into it (3.76% with the 30% down factored into the calculation)Total ROI = $79,000/$70,000 = 112.86% over the course of 30 yearsConclusion:Well, from what i see here, the problem is the interest rate used.