Owner occupied triplex and fourplex mortgages historically have higher default rates since folks historically budgeted with overly generous assumptions for rental income in mind, paired with FHA loans allowing for very high debt-to-income ratios (>50%... with the rental income counting -- think about that!).

Loan assumptions are not a quick thing either and you will need a strong sponsor.

If you were curious as to how I acquired my properties; shouldn't you have asked me before making such a derogatory assumption?

It has a lot of built in assumptions for the Denver area.

I have not yet been inside each unit that is occupied but my assumption is that each will need work before I can charge the $425.

Are any of my assumptions incorrect?

There are a lot of big assumptions here because I have to do a lot more due diligence, but since I am brand new to REI I wanted to get your opinion.  

But is this a false assumption?

That’s said, I could be COMPLETELY wrong since it’s it’s an assumption in my “gut” about the market.And in reality, you won’t end up with materially different maintenance or cap-ex expenses for a $120K vs. $140K property so that smaller mortgage payment or higher rent amount has a material impact on the bottom line.Anyway, just my thoughts.

@Rashad Colton Sure, it sounds like a good deal, based on your assumptions.