I showed her some fair deals and then a great one came along.

We're fairly new to investing and have maxed out our ability to finance SFH rentals using our own money.

I know how to calculate the cap rate.If i want to know what is the fair value of the MFH:What cap rate should i take into concern in order to know if the property is undervalued?

It's a fairly large group (150+) so it is also a great resource for networking2) Your Castle Real Estate - training classeshttp://www.yourcastle.org/events.cfmTechnically, this is not a club, it is a real estate company.

You need to KNOW what work is needed, what is typically involved, and you need to track it fairly closely (you don't need to count screws, but you better have a good idea of how much paint is needed per SF, and perform at least some rough job costing!).

But I am fairly new to this industry... can either of you ellaborate on "subject to"?

So make sure they have contacted the HO and are in direct communication with them.As far as your working with a Real Estate Company rules are the same as far as the Short Sale.

A bit more complicated but seems to be more fair than #2.What do you think would work out best?

You NOI calculation is not including vacancy either (which at a fairly standard 8%) drops your monthly cashflow another $64 leaving you at a $56 per month loss.

Thjis sounds like a fairly good deal to learn on (some might disagree), although it would be better if your after repair cost was 70% of retail value instead of 76%.