The DSCR just means that the rental income is equal to or up to 25% more than the proposed PITI mortgage payment.

I'm in Racine, and I live a few miles away from the proposed FoxConn campus.

I wouldn't try to go against anything the L/O heavy hitters have given you in this thread, however I would ask just a bit of clarification on exactly what the potential sellers are asking for.If they indeed just want to cancel the agreement on whim then no they can't and if they want that kind of power they aren't equipped to rent their property under any circumstances.Now it sounds as if you are just assigning the lease option (as opposed to staying in a "sandwich" type deal) so if what they want is to be able to review the qualifications of the proposed tenant buyer as opposed to just letting you put any warm body in there (Not that I think you are doing that, but they have no way to know if that is what you would do) that is not unreasonable and in fact is good business on your part IMO.Again the question as to what they want was not totally evident to me.

Even with the rental increases I'm proposing, I don't think I'll meet market rate for a while and that rate will keep rising, but my reasoning is that they ARE long-term, responsible renters.  

What would you propose to them to get your foot in the door?

@John-David HerlihyWhat you propose in your second paragraph about loaning money from each others IRAs should be avoided to maintain compliance with the rules.

Hello, looking for insights on a proposal received from a commercial mortgage broker.

@Jordan Vires If I understand what you propose:16 unitsPrice 50K per = $800,000Current Rent Potential = 16 X 550 = $8,800 per month or $105, 600 per yearJust a quick 50% rule would have you at $51,120 NOI per year 6.35% Cap Rate (NOI/Purchase price)Down Payment = $200,000Loan = $600KLoan payment based on 6% for 30 year amoritization = $3597/MO or $43164/YRYearly CF = $7956Cash on Cash return = 3.98% (Yearly CF/Down Payment)Just the back of the envelope analysis seems to indicate that the price of the property isn't supported by the rental income that is generated from the property.  

Curious to hear what this community thinks about the proposed legislation to get rid of all income taxes and instead implement a sales/consumption tax?

Also from what I have seen as people do this, the values can change from the initial proposed value to the final values in July/August.