My question would be is a 6 cap the going rate in the area for that building.

The fee to submit an application is $600.00.

If you pay off your mortgage (which is a good interest rate), you will likely burn through that cash flow as it is more accessible, AND that money isnt working for you anymore (unless you reinvested it).  

Sometimes they’ve already negotiated solid group rates.

Using a CAP rate of 7%, the $16,000 becomes= $228,000 of added value. 

Both said the same thing to me (so I know a problem is brewing): "Nobody is allowed under the law to assist a seller in any way, while earning a  fee, commission, or profit from selling someone else's property without a license.

It’s not necessarily more difficult than market-rate rentals, just different.If you’re seriously considering this route, feel free to reach out.

This is their full time job and they collect a fee but are still able to pass along strong deals to end buyers.

How do you go about determining market rate?

@Loren Souers I'd have to run the specific scenarios with the rates and fees, but if you're OK with paying the higher closing costs, the Mortgage 1 deal looks good, particularly if you focus on CoC returns.