I was wondering if you could help figure out where exactly I should land with an offer.Asking Price: $410,000FMV Rent: $1,455 per unit ($4,365 total)Rent Used for Calculations: $1,164 per unit ($3,492 total) (Used 0.8 FMV to be safe, but I can definitely get the FMV which I will describe in more detail below).Vacancy Loss: 8.33% ($291.00) Gross Monthly Operating Income: $3,201.00Repairs & Maintenance: $320.10 (10% of GMOI)Real Estate Taxes: $440.00 (1.3% of Purchase Price)Rental Property Insurance: $170.79 (0.5% of Purchase Price)Replacement Reserve: $50Monthly Operating Expenses: $984.85Annual Net Operating Income: $26,593.80Capitalization Rate: 6.49%Cash on Cash Return: 32.53%Days on Market : 3Now what's interesting about this property is that it's completely gutted rehabbed (new EVERYTHING, but no stainless steel appliances, but the market doesn't call for it) and it's in a good location.

What you described of the lender approving one draw amount, but only funding 80% of that amount seems odd, but also should have been explained by your agent prior to taking out the loan.

I'm including more numbers below if you want to take a look at them.After going into a unit and checking out the common areas today, my broker described it as "B-" in terms of interior, and "A" in terms of location.  

@John Semanchuk was my agent for the first 3 and is at least everything I described above!

@Loni Anderson what you described sounds more like fraud than anything.

If that the situation I described above is true, where you bought the property from the tax lien holder, they had started the foreclosure and it completed with no redemption by anybody and you got clear title, AND if the property next door is owned by the same people (now deceased) who previously owned the property you just bought - then you might be able to get the next door property through the tax lien foreclosure process once the 3 full years are up from the date of the first tax lien was issued on that property (assuming you own the oldest lien on that property).The only way to get the property before a tax lien auction is to get the owner to sell.

There are investors looking for exactly the type of situation you describe.

In either case, we had thought they could have been capable to tackle the situation like I described.

The Fondren area seems to be pretty up and coming, I'd be interested to hear your thoughts on investing for buy and hold there, and your Jackson experience in general.I wouldn't describe Fondren as 'up and coming.'

A private money broker company uses a syntax like 40/3 as part of describing an investment loan opportunity.