CA is very expensive right now so it makes this decision difficult, I would personally spread it over multiple SFRs or a small multi if its a good deal.

When I used the same 5.7 cap rate on the adjusted expenses and income the NOI was 34,020 the valuation calculated was 596,140.

So this brings me to what ideas and questions i have: i am looking at a nearby new construction multifamily property (townhouse), where the area/location has great schools and convenient  to many amenities such as shopping and easy access to downtown.Also, this townhouse is a new construction property and should reduce or eliminate  my expense cost for the first couple of years due to warranties.  

Unless my understanding of NOI is incorrect.Isn't the Net Operating Income the income generated after expenses are deducted, meaning the cash the owner gets after paying the operating costs.

I was just using a standard 30 year conventional mortgage to analyze the expenses but would like to find a way to analyze it with hard money.

Some lessons learned, ownership is expensive and time consuming, roommates never want to help with house improvements, and make sure to include the income on taxes.

What am I missing here folks, what am I not factoring in, has anyone else been in this situation, is there a better solution to offset the expense of a mortgage of $1900?  

I just bought a home in Farmersville Tx and my only out of pocket expense was the inspection, 0% down through various programs and negotiations.

Middle Income is about 54,000 so that is about 1,300 a month in affordable rent.So for middle class it was saying take older apartments 20,30,40 years old that have lower rents and update them but make sure the new rents are not above the median income earner level.Multifamily New Construction  

What most people don't seem to get is that the small percentage 3-7% in most cases gets severely chopped up and goes to many different parties or expenses.