Then compare that number to the total income show on the Schedule E.

I would take both comparables and income valuations (cap rate) into consideration.

Compare your values to the actual values.

@Russell Brazil Not trying to compare status of real estate success than for any other reason than he has an entirely different opinion on solar conditions in DC/MD/VA.

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10. 

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10.

In order to determine value, you would need to find similar properties to use as comparables.

How does it compare to Cozy?

Maybe if you’re using the LLC for tax purposes, but if you’re only doing a couple it may not be worth it.

If that doesn't work, I'm moving forward anyway and hopefully success will convince him.Also for clarification purposes, he used to flip back in the day and had moderate success with it.