Shawn - I would suggest you develop a pro forma based on the stabilized state of the property to understand if it cash flows once all units are occupied being sure to include all reasonable revenue assumptions (rents, vacancy factor, etc..) as well as expenses (debt payments, maintenance, utilities, property management, taxes, insurance, turnover costs, etc..)

As you and others have pointed out, and my initial assumption, that just seems hard to believe.That said, I'm going to a sale on Tuesday, I will report back what I learn in person.

It is hard to evaluate this deal without more of the underwriting assumptions shown.  

.$2M in, at this future time, lightly levered RE.Supposing this is close to what you’d love, one could spit out a financial plan that looked something like the following:- Max HSA- Max 401(k)Use leftovers to go on a shopping spree buying RE at relatively low leverage, potentially on 15 year mortgages, in local LCOL area (which probably also means a relatively reasonable cash flow market)Obviously I’m making a ton of assumptions here and will be wrong in ten places.

You could also do a VA loan assumption of a loan from 2021-mid 2022, that way you'd have to put less down and still get a good rate, it would have to be on a property with less appreciation.Oh and if you have a friend thats an agent, get MLS access in your area if they will possibly add you as an assistant, etc.

Hey guys. I have a question. I’m buying a house and assuming a VA loan for it from a veteran. It’s not a subto. How do I protect my assets and potential liabilities? I know I can’t use an llc for it. Besides buying pr...

Am I off base in that assumption?)

Am I off base in that assumption?)

Big assumption..... all PM's and contractors are honest, trustworthy, do good work and are reliable and efficient.

@Gulshan D.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.