If this was through a local bank, they might look at it differently but big banks don't play with this as a general rule.

Yinan,As Joel mentioned, you need to have money to play in the commercial arena. 10% reserve is normal.

At face value, this looks like it could have a CAP rate of .27%.It is a 2 BR/1BA w/bonus room and central air.Let me know your thoughts/suggestions.Thanks.

Speaking to GRM, cash flow, cap rate etc. numbers look good and here's what I'm seeing from a quick snapshot: Using the numbers you provided and assuming you are putting 25% down and an assumed vacancy rate of 10% and I threw in about $800 yr for updates and repairs to play it safe I see this property kicking off about $385-$400 a month.

Bonus questions:1. 

(Yes, I know many American people played their part in it too).  

Common sense needs to come into play somewhere.  

Those books will give you a good understanding of why we play the RE game.Real Estate is really about relationships.  

He is not your typical cashflow/appreciation investor, he just plays with money and assets.

Also, have to know the local practice on 100 for the garage, and what if someone was not interested... so that income may be tough or a "bonus" for a one year lease to attract a good tenant...