You act like we are doing something unethical here but I can tell you that we operate above board.

. / $4,166.67Annual debt service “DS”Revenues:Monthly AnnuallyRental Income$935$11,220.00 (RI)Vacancy @ 8% ($74.80)($897.60)Net Rental Income $860.20$10,322.40 NRI)Operating Expenses:Property Tax- 1800 (this is being challenged currently, but no ruling at this time)Insurance- 1000 (estimate, I will get a quote on this for sure.)Maintenance- 1200 (Estimate)Utilities- 800 (Estimate)Advertising- 100 (Estimate)Total Operating Expenses (*Very Estimated*) = $4900 (TOE)Net Operating IncomeNRI-TOE= NOI$10,322.40-$4900= $5422.50 (NOI)Total Cash FlowNOI- DS= TCF$5.422.40-$4,166.67= $1,255.73Return on InvestmentTCF/ TCO= ROI$1,255.73/ $5,000= .2511 (25.11%)Cash on Cash (Considering- Down Payment, Upfront Repairs, Closing Costs)TCF/ TCO (W/repairs and closing costs)$1,255.73/ $6,500 ($5,000 DP + $0 Initial Repairs + $1,500 Closing Cost) = .1923 (19.23%)My thoughts regarding this deal: I think the asking price is a little high for the property considering it’s age, condition (off of visual inspection from the street level only), location, what limited comps I could find.

Brokers in general don't understand how apartments operate or lie about the operations2.

These smaller banks operate differently in many cases.

Antonio,Follow the above advice and you should be able to come up with comps, listed or not does not affect the process.When working solo, especially as a newbie having on intimate knowledge of your area of operation (like Jake mentioned) is key in being confident in comps and knowing what is and is not a deal.

If you have a net operating income of $40k and the offer is $100k per acre for 3 acres the effective cap rate at the offer price is 13.33%.

You do not need to spend any more money or time on seminars, it is just time to organize your thoughts and get started!!

There is no statute being broken, so next time anyone tells you something is illegal demand they provide the statute or stuff it.However the lender has rules and without them co-operating your not going anywhere.

For example, if you operate two separate farms on which you grow different crops and you keep separate books for each farm, you should make two separate elections to postpone reporting insurance proceeds you receive for crops grown on each of your farms.

What game do you want to play - that is the question you must ask and then learn how to do it in and out.If you intend to be a landlord (based from your post), you need to understand landlording and more specifically, operating expenses and all expenses associated with rental units.