At least they weren't operating a "grow house".

Without an understanding of how the collateral will operate it becomes hard to evaluate the collateral and loan itself.

I feel your pain, I ran a conventional REIA but was kind of sick of the whole sales thing myself, even though that's how we made our operating budget.It takes a lot of work to find a venue willing to give you free space, that is located appropriately, and that is large enough.

This will give you a rough idea of what the Net Operating Income (NOI) should be for the property.

Figure what the LTV will be (say 75%) and there are loads of calculators online that can give you the numbers.

hey Corey Dutton, this is a loaded question if you're talking about suburban/urban areas AND rural areas.

I am owner-operator but lack specific experience in mortgage writing.

Using the 50% rule, your net operating income (NOI) for the year will be 43980/2 = $21990.

Price: $75,000Equity/Down payment: $20,000LTV: 73.33%Monthly Rent Income: $1,150Yearly Gross Operating Income (accounting for vacancy loss): $13,000Taxes and Insurance (yearly): $1,500Yearly Condo Fees: $3,600Misc Yearly Maintenance: $600Yearly NOI: $7,300Yearly Debt Service: $4,500---YEARLY BEFORE TAX CASH FLOW: $2,500CAP RATE: 9.73%ANNUALIZED CASH-ON-CASH RETURN: 12.5%What do you think?

While operating an LLC is fairly simple there are a lot of considerations to make.