That is a 10.7% return for the $135K investor not including principal paydown. 

Objectively look at the potential return vs risk before proceeding.

Unfortunately, it will most definitely get you a negative return on your investment.

He states you shouldn't purchase a property unless it cash flows $200 per unit and has a cash on cash return of 12% of more. 

If they don't ask for more info, they aren't interested.An "after the deal was done" spreadsheet I did for an investor is at https://www.biggerpockets.com/forums/600/topics/58...Every deal is different of course, but you want to look for a Safe investment (cash flow or flip, etc) that has returns that are greater than they can get in their current investment.

I borrowed the money to buy the unit and i have to return the money within 60 days(thank you family for the loan and giving me oppertunity). 

I hate asking for help without providing anything in return, so I'd prefer NOT to do this, and it seems bad form to offer a small fee to them, but if it's recommended, I'll do it.I appreciate any and all help regarding this matter.

And see if it pencils out and meets your returns.

Hey Jonas welcome to the forumI think the HMO numbers you are projecting seem very high unless you do rent-to-rent, in which case you CoC return is very highI regularly get sent HMO deals in the midlands, but it's not my target market right now, so feel free to connect with me if you want me to forward any on to you

In my situation (getting 30 year mortgage with 25%) the Cash on Cash return are pretty low.