For example, a first time BRRRR may trap 10% of ARV, but produced tens of thousands of additional equity creating a great initial return that could counter mediocre or poor initial cash flow to bridge the time gap to where the cash flow is good (from rent appreciation.  

However, I need to refinance to get a better rate and lower my monthly payment to produce more cash flow. 

My thought is that the more cash flow a rental produces, the less money you need in reserves but I'd love to hear other peoples' opinions/advice. 

I’m definitely his top producer.

If you have a Class B quadplex in the same market, and it produces $50k per year in net operating income, and you know that investors are buying at a 6% cap rate right now, then you can probably assume that your property is worth $833k based on the market cap for this type of asset (because $50k ÷ .06 = $833,333).To look at it in the other direction: If an investor paid $833,333k for it, they'd earn an annual return of 6%, because $833k x .06 = $50k.

For example, if a property is $300,000, and is producing $30,000 per year, That is a ratio of 10 (rents divided by purchase price).   

I mean, even if I'm thinking maybe it's a scam, I can't imagine how this would produce a successful scam any more than a conventional sale with conventional financing.

Thanks Jason-I don’t know: my attorney is saying that as long as they can produce a mortgage rejection letter, they can walk away—the thing is that I spoke with the buyer and they already got approved for a mortgage but decided the mortgage closing costs are too high.  

Anything 5+ units the value is derived off of the NOI (net operating income) that the property produces.  

If there is, you will be drinking out of a glass that was produced and distributed from Toledo.