Lenders should normally be adding back depreciation and 'one time' expenses.

@Joe Splitrock is correct, for the historical averages, although we are not in a normalized market by any stretch right now. 

I would propose a better way of evaluating real estate and that is to take the difference between the CAP rate and prevailing interest rate and use that to evaluate whether something is a deal or not.D = CAP - %APRThis would allow you to calculate the spread which is directly related to your debt assisted profitability (like a cash on cash return).You can vary what “D” you will accept based on the normal factors you would consider when thinking of the CAP rate (location, building type, number of units, financing, deferred maintenance, etc).You could also rearrange the equation to calculate the CAP to search for opportunities and how to offer for property:CAP = D + %APRIn this case, you can actually figure out the CAP by knowing the “D” you want to get for a given location, building type, etc and understanding the financing available to you and other investors for the opportunity.Any reason this is an inferior approach to CAP rate or cash on cash return?

The pay was less per deal than you would get in general brokerage, but you don't have to hunt for your own business, and you keep pretty normal business hours except you do have to work most weekends. 

Can a normal detention be built on this area or if this area is considered wetland and no construction is possible.

Normally the terms might be x% return in y Months or the return of investment after the sale and Z% of the gains from the sale. 

@Seda HoweI am 100% for taking a 401K loan as a down payment on a rental property.1) The fees on a 401K loan are normally subsidized by your employer.

@Aaron AlsupLenders normally add back depreciation and certain 'one time' expenses such as major repairs/renovations.Best of luck.

This is a normal occurrence in my dealings in small multifamily. 

My plan would be to do this for a couple years and either I'd find another creative finance deal to buy for myself and rent the 3/2 out normally and after 2/3 years of credit to refinance the property and get it on my own loan.