Do you need to account for any extra expenses like water, trash, upkeep, etc?

If I had a lot of extra time on my hands and have proven my business savviness, I would take a portion of the $500k (maybe $100k to $150k) to acquire a multifamily with a 25% down loan and manage the property myself - this is sort of how I got started.

Some lenders out there are truthful, others are not.

For extra information, the loan amount is about $100,000 and my credit score is about 760.

Maybe you could self manage a 5-unit and reap the extra profit, but what about a 100-unit?  

So an extra $1,600 in closing costs. 

Some people have said they're extra afraid of having things go wrong with a family member...

The broker told me you're not allowed to offer extra money.

The truth of the matter is a symbitotic relationship between brokers and buyers are what truly establishes market cap rates.

But you will end up paying 7.65 in extra taxes.