I understand that once a property is listed, the competition grows, and the pool of people with awareness of the offering increases... but this one just went live, fits all his criteria: the price, the CAP rate, the potential upside, the cash on cash, it all fits.

Cap rate goes from 10% (purchase estimate)  to 13% (proforma)First things first, I will bring rents up to market (maybe turn over some undesirable tenants).

The CAP rate is roughly 5-6% and that's pushing it in my area.

Additionally, if you are already capped at SE income you are only paying the medicare portion to get the full deferral.

I tried to be fairly conservative with my numbers:https://docs.google.com/spreadsheets/d/1YJzV_LzfZN...Price - $399,000Downpayment 0Improvements $5,000Finance Amount  100%Interest Rate  4.50%Closing Costs (Including Setup LLC and draft promissory note)  2500Upfront Investment - $7,500Revenues                                                       Monthly            Year 1Rental Income                             550             4,400                52,800Vacancy Rate15%                                         (660.00)             (7,920.00)Net Rental Income                                         3,740                  44,880Other Income                                                                                  00Gross Income                                               $3,740                 $44,880ExpensesProperty Taxes (annual)                                                              3,700Insurance (annual) 1,036 per unit * 4 units                                  4,144Property Management (% Rent)   6%                                         3,168Maintenance & Repairs (Annual)                                                  4,000Advertising (Annual)                                                                        300Utilities (Annual)                                                                                00Total Expenses                                                                         ($15,312)NOI                                                                                            $29,568Financing1st Mortgage                                                                             $319,200Term (years)                                                                                     30Interest Rate                                                                                    4.50%Payment (Monthly)            -$1,617.34                                        -$19,408.072nd Mortgage                                                                          79,800Term (years)                                                                                     10Interest Rate                                                                                  4.50%Payment                                -$827.03                                       -$9,924.41Cash Flow                                 $20                                                $236Investment Basis                                                                         $7,500ROI (cashflow/basis)                                                                      3.14%Cap Rate (NOI/Property Price)                                                       7.41%My primary concern with the property at the list price is exit strategy.

Expenses= $18,358 Administrative Expenses= $14,727Total Utlilties= $8,990Taxes/ ins right now= $9,888 but taxes would jump to $7,500 per unit so would increase it to $19,888Media Expenses= $761Total Expenses= $62,723NOI=$89,987-$62,723=$27,264Property worth using cap rate of 10%= $27,264/.10= $272,640 x .2 down= $54,528$218,112 loan at 4% for 25 yr with 5 yr ballon= $1,030/month x12= $12,360Expenses + mortgage= $75,083yrCash Flow= $89,987- $75,083=$14,904/12=$1,242 month

There are additional costs associated with billing utilities back to residents that way, but you wouldn't have any cap ex to re-wire the place.  

I think the simple answer is if you find a portfolio for 120 mill with a 10% cap rate.

It's also thin, flimsy and doesn't take nails well.  1x6, preferably with base cap (as @Wayne Brooks mentioned) is a timeless look....for good reason!  

I like realtor because it's free and interactive, but it rarely shows factors like rent price, cap rate, etc.