The underwriter looked at my case and find big gap at debt to income ratio.

Lots of current debt on the property including maintenance fees, RE taxes and an assessment from the hoa.

In your example, a $5000 +/- on expenses can swing the cap rate from 10.5 to 12% may not seem like much but depending on your debt cost could be significant.Lastly, some items should be easy to estimate (taxes, insurance, etc..)

Sell 2 duplexes (4 units) at 90k a piece and almost pay off the debt and hold 6 units.

@Anthony Newbold  the reason he is not in jail is because we no longer have debtors prison... our debtors prison is now credit card debt and other consumer debt that people voluntarily get into .

Hopefully sell by January, pay everything back, and have cash to pay off debt, fix credit, start new flip, and get going.

@Stan Hrincevich this could potentially be a RESPA violation (Real Estate Settlement Procedures Act.)

I'm in school mostly on scholarship, so I will have little debt by the time I graduate.

Having a financial equitable interest is what is conveyed with a sale contract and what investors usually attempt to sell or assign, as having a valuable interest in a property.Any contract only takes the parties to a settlement, if all is agreeable, the parties may continue with the terms to a settlement, so long as they have a legal contract.The question of an equitable interest can come up if a seller decides to avoid a contract and not sell.

As you suggest, it may have and U/D not filed or some kind if Stip Agreement entered into that spells out terms of settlement, to the contrary.Otherwise, we're all just guessing.