to be some upside that I am missing in my valuations:Purchase price:  495,000Units:                      16Rental Income:      8,400/moDown:                    20%Down:                    100,000Closing:                      6,400Repairs:                    16,000 (assume 1,000 per unit)TOTAL INVEST:     122,400Costs:  Debt:                  2,800.00 (6%)   Taxes:                   690.00  Insurance:            200.00  Sewer:                   800.00  Heat:                  1,200.00  Yard:                       40.00  Garbage:              300.00  Cap Exp(3%)        252.00 (Lower than I normally go)  Repairs (5%)        420.00 (300.00 per yr/unit)  Mngmnt (10%)    840.00  Vacancy(7%)        588.00  Screening              40.00 (tenant screening)TOTAL COST:     7,600.00 (rounded)Monthly CF:          800.00 (yikes...…...50.00 per unit!!)

If it ain't broke, don't fix it...but plan on fixing it in the next 5-yearsIf your ARV is only $315k, you have little equity unless you are accelerating debt paydown somehow.You will have lender fees.

Kathryn, I've been there before with the debt.

If I'm being honest, I have not looked into the legalities of charging an early termination fee in Iowa.

Now, if the seller then wants the buyer to keep the EM anyway, that's a business choice, not a legal requirement.Your example and the posters are not the same.  

Does anyone know the legality and ethics of registering at a rental address?

They agreed to try to find something to buy but my father doesnt have an amazing credit score like me or my brother, plus he is unemployed so he wont get a mortgage.I told my brother that he has to be the one getting the mortgage because I have plan of starting my real estate investing career in January (buying a duplex) so I cant have a mortagage like that on my name because my debt to income ratio will be high.

I consulted a local lawyer that knew the law and the bulk of the replies were incorrect.So far the problem has gone away but there still may be a legal show down in the future but I suspect the other party has or will back down. 

I would prefer raising money thorugh debt, but am now thinking it's probably more realistic that someone is going to want equity in the building (I think I prefer hotels over anything else.)Has anyone ever done something like this?

Could you confirm if there are cats please.I plan on responding tomorrow.Yes the lady above does have a cat too. ( she never told us about the cat when she signed the lease but we feel she is a good renter so we let it go ) I never thought to mention a cat when showing unit, only mentioned the two dogs because they bark and l wanted a tenant that is okay with that.Do l have any legal obligation to have let him know there was a cat prior to signing lease?