**Update**First, thanks J Scott, John Stevenson, and Jack Bobeck.I'm glad my estimate is somewhat close to yours and on the conservative side.

I have another question for you: Do you work with inner city real estate, and if so, do you find it difficult to unload a rehabbed/ updated property that should hold a significant value do to increase in neighborhood deterioration/ crime rates?

If the language is present, then you will want to send some letters out citing the language and informing the borrower the payment is insufficient and illustrating how the partial payment was applied and essentially make a New demand on the new updated balance.

I think more of what you are asking is how the occupancy level and accuracy will affect what kind of loan you can get and how much you will put down and how much the debt service will be.A regular lender at 90% occupied maybe 6.5% fixed at 75% ltv.If you get into value add deals you will pay points and a much higher rate to fund and lower LTV.You will then need to refi after stabilizing about 1 year out.So you build the carrying costs into the amount of time needed.The books will determine the verified income and actual costs.From there you run your desired cap going in and that tells you around the price you want to pay.Now if the books are out of normal standard margins you have to ask yourself why that is (deferred maintenance,undisclosed credits to tenants,disguising fees paid to themselves in other line items,etc.)

Secondly thank you for posting that reminder and reality check for us all.I have to admit, I have a 4 family with washer/dryer hookups in the basement for each tenant and I know several tenants do not clean the lint out of the dryer regularly like they should.

This property is an investment property, and already has a tenant in it paying 700$.Since I purchased it with a short term lender, I'm looking to quickly get it refinanced with a regular bank, lower interest 30 years fixed.

I personally think that the deals that get bragged about here on this forum with regularity are either exaggerated, or just make it seam like the deal of the century is sitting on every corner because people are just simply not going to share lackluster stories.

@Jon Holdman FYI because I thought you'd be interested: I have heard it regularly called "open escrow" in Texas as well, at least among local investors in Austin

So, its no worse than a regular W2 job.What is worse is that because you're self-employed, you have to play both halves of the Social Security taxes.

You need to have an area that is used 100% regularly and exclusively for business.