The 5 year proforma by DEFINITION is based on a whole slew of assumptions about a whole host of issues in the future - national economy, local economy, interest rates, cap rates, rental rates, political and geo-political factors.

ALL of these issues can happen locally as well for sure, but if you learn locally the lessons are generally not as expensive. 

Although it has its issues like all big cities.

Single might not have as much cash flow, but multi family properties create more potential for issues since there are likely multiples of everything (furnaces, hot water heaters etc)-what property class are you looking for.

Most of our tenants are reasonable folks, and the buildings in A and B level communities have mostly routine issues (leaky drains, roofs, etc). 

Or perhaps you are all experiencing similar issues?

I was just wondering if there are any issues that wouldn't allow me to make this deal because it is close to foreclosure.

The issue is the property needs a good bit of work and I dont have the capital to do the repairs, like a roof replacement.

Hi @Bauclair Mbouadeu,I think the roof portion having 5+ years is probably far enough away for it to not be an urgent concern so that should hopefully alleviate that as an issue.

The one issue is that you can only purchase real estate "Cash" in general as most lenders won't let IRA's take out loans, but I've seen it done if the deal is right.