Your best bet is to review a self storage rental agreement, and work from that.

Are you betting on appreciation?

This is after all operating expenses (taxes, insurance, prop. management, repairs, vacancies, etc.).

Here's another spin on the numbers you've reported in your original post - Gross Potential Income Rent: $325 x 24 Units = $7800 Utility Income: $48 x 24 units = $1152 Less Vacancy (7%) = (627) Gross Income: $8325Expenses, monthly: $4083 (from the annual expense figure you were given)Net Operating Income: $4242Debt Service: $4112(I happened to have a very good friend who's a multifamily loan officer in Dallas, and asked him this afternoon in a call what rates are available right now for a multifamily deal this small - he gave me 5.81%, 30 year amortization, 5 year call.

If this lease-option "buyer" is a relative newbie (and I'm betting he is), then I would NOT do this deal.

You're operating off of a different system from the buy/sell/flip approach.

If you are interested, please contact me directly to discuss.Valley Agent Criteria:A self starter, but not someone who is ambitious enough to go out on their own… Knowledge of SF Valley and Thousand Oaks/Simi Valley (member of SoCal board) Someone who understands the rental market (acquiring low price properties that demand high rents) Experience with Winforms and MLS Investment property experience Computer savvy Home office with fax, email and a windows operating system, Outlook (not MAC) Someone with an existing book of potential clients Someone who knows the neighborhoods intimately in the SF Valley and Conejo Valley

Operation of law (such as BK)2.

If the prime rate was to climb a few points, I am willing to bet all the banks will jump back on board.I have not had a problem with my HELOC from my credit union to date (knock on wood) and they seem to have the lowest rates, lowest fees ($0), and the simplest approval process.

Tim - I'll bet your Dad taught you the meaning of real work, something far too many don't know much about.....