My mortgage broker is saying that the rate on rental Fannie Mae ARMs is very bad compared to 30yr/15yr fixed.

Aside from the inside looking nice and the proximity to campus, because I bought it right, I can keep my prices attractive yet profitable compared to the new builds. 

Originally posted by @Marc Andrew: . 126,820/1,700,000 = .0746 which is your cap rate.Which means absolutely nothing unless you have cap rate comps from comparable sold properties. 

Shanaa,How do you compare you confidence and competent level approaching things that is new.That's where you begin once you find the real answer your on your way to mastering your real estate investment goals.No doubt you'll do find!!

The $800 number doesn't really help in comparing to the OP's deal.

Plus your payments will be interest only, reducing your monthly debt compared to hard money.  

You may be suprised either way Why would you bother trying to pull comparable sales on a multi-unit building?  

Comparing apples to apples, Allstate has consistently been half of some of the other companies. 

Now compare that to taking on the risk of a project where you can manage the rehab and 100 aspects of a piece of real estate where you have almost total control of the outcome based on your knowledge and experience.  

It is only meaningful within a given local area as a means of comparing what folks are paying for similar cash flows.