You have 1.3%....The "2% rule" should be applied where rents are roughly $500 per unit; when rents are lower than $500, you will need for that percentage to be higher; conversely, when rents are higher you will be OK with a lower percentage.

Also OP gave us the number for the debt service, use that to analyze his deal, and suggest he can lower it at the end of analysis.Manuel, I think people are getting tripped up by your terminology, 50% covers all expenses expected over the lifetime of the investment, not just repairs/maintenance, this includes vacancies etc.It's a guideline for rough analysis, but understand it and use it correctly.Edit: OP did mention debt service and TI as separate line items, so my calculations stand asides from Hoa and 50% maintenance cross over.

Personally, I think a lot of it boils down to if a broker can hold an intelligent conversation as to the loan process, required documents, what the lender charges and when, etc.Anyone who has been in the CRE finance sector for any amount of time should be able to talk with a reasonable degree of confidence, and knowledge, about whatever they're offering.The loan process, and requirements, differ from program to program.

CRIME is a big one.The percentage of non-violent to violent infractions and if crime is increasing or decreasing in the immediate area.Intermodal transportation study is another and the future land use map.This will give you an idea of where they are today and what they have planned for the area in the future and how the city and county will be allocating their resources to develop certain areas.Much more items than this but it's been a long day and my brain is out of fuel........ :)

That said, personally, I like to have the *major* stuff inspected ASAP - my roofer will do a quick check out if I buy him lunch & my Hvac guy will check that out for ~$50 - those two items are expensive & if they're not right, you want to ask for an adjustment at the beginning of a short-sale & make sure the lender knows they're bad.

$275 on a $500 apt is 4.5% of annual rent, $35 on same apt is .6% off your top line.These items should be part of the construction/improvement inspection and not some arbitrary re-rent inspection (did you make any improvement?)

People poo poo the guru shows, but you know if you spend a few hundred bucks and attend and pick up 1 item to help you close a deal in real estate, what is that worth, at least 5 to 10x the cost?

I think more of what you are asking is how the occupancy level and accuracy will affect what kind of loan you can get and how much you will put down and how much the debt service will be.A regular lender at 90% occupied maybe 6.5% fixed at 75% ltv.If you get into value add deals you will pay points and a much higher rate to fund and lower LTV.You will then need to refi after stabilizing about 1 year out.So you build the carrying costs into the amount of time needed.The books will determine the verified income and actual costs.From there you run your desired cap going in and that tells you around the price you want to pay.Now if the books are out of normal standard margins you have to ask yourself why that is (deferred maintenance,undisclosed credits to tenants,disguising fees paid to themselves in other line items,etc.)

I also know that you may NOT market to pre-foreclosures/foreclosures (which simply means do not mention these two items in your advertising).

Sorry I'm not following, your PI is $1191.55 add the 50% which will include TI and then add back taxes as they are an extraordinary item, and your expenses come to $2796.