The problem with averages is that a large number of high or low value properties can skew the figures either way.

They must be very low odds because insurance companies are in the business of making money, not paying out maximums.

We mix it up with performing and non performing loans and we have some performing that are short term bridge loans as my confidence in reperforming paper is low based on the re default rate risk.One last thing to touch on, there was a comment that I am one of Marco’s henchman.

Your estimate seems low, but even at that cost, it will not add that value.  

You get paid a 5% acquisition fee and regular cash flow with low risk.

now if you could get a seller to be the bank I get that you could smoke and mirror those deals.. but i would think those would be picked over low value or properties in the worst areas of town etc..   

It allows you to take advantage of a low down payment loan.

Low vacancy rates, rising rents, and high tenant demand for more space/good school districts. 

Quote from @Jaycee Greene: Assuming you pay asking price, I'd estimate the down payment for something like that using a hard money loan (HML) would be around 40% of the purchase price and your monthly payment would be $2,600 with an interest rate in the low 7% range (probably need a 700+ credit score to get that).

As you grow your portfolio, keep an eye out for lenders who offer low down payment options for investors or those that allow leveraging the equity from your existing properties to fund new ones.