The home was purchased using an assumption loan with a 2.2% interest rate!

(title transfers but the loan stays in place and is not formally transfered to you via an assumption).

It shows the kinds of terms necessary in order to have an 8% IRRSometimes you do these numbers on what otherwise looks like a sensible investment and it shows that, even with rosy assumptions, you are losing money.

I can't believe the automatic reply of ALL, not just @Tim Swierczek, would be to check the tax record for a why vs jumping down a rabbit-hole of weird assumption. 

FHA and VA loans are typically eligible for assumption.

Here are my thoughts: My assumption is that I don't have a corporate veil to begin with because my plan is to buy the property in my own name with a DBA (let's call this Business A).

To make broad generalizations or assumptions about entire quadrants of the city being "problem areas" is an error in judgement, in my opinion.Now, there are areas on the west side that I definitely try to avoid, but if I have to go there, I make sure to do it in the morning hours when most of the delinquents are sleeping. 

Couple of different ways to do that:)Many parts of the USA don't have cashflowing Class A rentals currently.So, recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

However, whether gift tax is applicable depends on the value of the property transferred and the lifetime gift tax exclusion amount, among other factors.Cost Basis for Your Dad's Portion:Your assumption is correct.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Our OPINION for the most markets (always verify each area for yourself!)