What I'm looking for guidance on is whether my other assumptions are reasonable and if there is a reason not to further pursue this opportunity.

Gain a deep understanding of the legal term, 'material information' and use it as a tool.4)  If you really want this place and it's been on the market for a while you may want to find the broker who originally listed it (I'm making an assumption that it's on broker number two by now) to ask her/him for some real deep details.  

The biggest concern you'll have @Jamie Adames is the due on sale clause... a bank loans YOU money with the assumption you are a person that owns the property. 

I have to make some assumptions to evaluate following properties to answer that question. 

I assume it is high, but I don't want to make assumptions. 

You're operating under the assumption she even is willing to sell it.

Basically, my assumption is I need to build a paper trail (tax-returns, rent roll, etc) of my current portfolio for a couple years to shift things out of my name, and into a company. 

The appraiser used the income approach for the appraisal, but in the expenses analysis made some unrealistic assumptions...such as 3000/mo in landlord paid utilities, 8% contingency reserve, 8% vacancy...the list goes on. 

Deborah Hill you could always see if the bank allows assumptions and you could assume the loan (assuming the interest rates and rest of the mortgage is under market value for the home so you’re still getting a good deal).

Using all the basic assumptions for that theoretical property:1% rule: $54k/yr in rent50% rule: $27k/yr net after costsfinance on $330k note: ~$19k/yrcash flow: $8k/yearSo instead of loosing $5k cash over the next 8 years, you could be making $64k with a better performing property, and still building equity in the new property.