Before finalizing any deal, not only will you need to make sure that the NOI is accurate but that the assumed cap rate makes sense for the market.

In addition, it would be helpful to talk to the exiting residents and see how much appetite there is for them to own and to get a sense for their financial strength.Hope this helps.

They acted quickly, and offered over asking price because I am sure the numbers made sense to them.

This is what I had in mind I always like to get a sense of what may work from others before going to see my accountant.

I can refer you to a few options to get your entity created with competence but it would probably make sense for us to connect over the phone to discuss further...and not over a forum (time and privacy considerations). 

So here we missed one payment in this example, but our credit report actually shows 3x30 day lates.Like @Harjeet Bhatti said, you're probably cut off from the gov't subsidized Fannie/Freddie stuff for an investment property for a year or so.However if you come across something, and it's such a screaming deal at that price that it still makes sense even with non-ideal financing (remember that if you have to choose between the two, killer price is better than killer rate -- as any successful flipper will attest to), there's a lot of "Alt-A" (once upon a time called "sub prime") that's come out just in the last year that's better than HML.

Ok that makes sense. thank you!

If you put in an offer that made sense based on your numbers than stick with it.

Do not fudge them just to make a deal look good.Offer at a price that makes sense for you to cash flow without fudging.  

If you have a lot of liquidity, it might be not be a problem to tie up that much cash.Hope this makes sense.