Booker, that is correct.  4% would be great if you can find that in the LLC.  5.75-6.5% is what I would budget/ pro forma at.

I recommend if you're doing a long distance deal make sure you can form a team on the ground and really forge long term relationships with your team members.

Purchase Price: $100,000.00 Purchase Closing Costs: $2,500.00 Estimated Repairs: $0.00 Total Project Cost: $102,500.00 After Repair Value: $120,000.00 Down Payment: $20,000.00 Loan Amount: $80,000.00 Loan Points: $0.00 Loan Fees: Amortized Over: 30 years Loan Interest Rate: 4.500% Monthly P&I: $405.35 Total Cash NeededBy Borrower: $22,500.00 Monthly Income: $850.00 Monthly Expenses: $840.35 Monthly Cash-flow: $9.65 Pro Forma Cap Rate: 4.15% NOI: $4,980.00 Total Cash Needed: $22,500.00 Cash on Cash ROI: 0.51% Purchase Cap Rate: 4.98% Total operating expenses: $435.00 Mortgage expenses: $405.35 Vacancy: $42.50 Repairs: $42.50 CapEx: $85.00 Insurance: $80.00 Management: $85.00 P&I: $405.35 Property Taxes: $100.00 Financial Info Income-Expense Ratio (2% Rule): 0.83% Total Initial Equity: $40,000.00 Gross Rent Multiplier: 9.80 Debt Coverage Ratio: 1.02

These numbers are part from pro forma, part from seller disclosures.

And then to see properties with major value add requirements not pro forma out unless one is hyper aggressive. 

in the 90's someone could get a chattel loan for a mobile home and rent a lot form a MHP.  

However, I would interject that if one was to form a business plan to present to a bank or partner, it would be smarter to remove as many obstacles as possible to start, right?

Congrats @Kenneth Law form a local hard money lender.

All of the details, including drawings and pro forma, will be provided following initial qualification.Requirements- Commitment of at least $50,000 in equity upfront- Experience as a GC on multi-family projects (including references)- Strong track record of quality, efficiency and safety- Located in Southern CaliforniaPlease PM me to discuss further.Best,Gene

My business partner and I have been looking at multifamily units since April of this year trying to find a deal where the numbers worked.We ran into some common issues on properties we had to pass onRents were pro-forma based on "market"Expenses were under stated, did not include management, and did not reflect accurate costsProperty condition was overstatedOur general requirements were to find a property in a good rental area of Houston with a solid rental base.