If you verified rents at 3,050 X 12 = 36,600 a year.Since utilities are paid by the landlord I would use 60% costs.36,600 X .40 (60% costs) = 14,640 NOI14,640 NOI / 157,500 sales price = 9 cap Depending on the area of town could be a bad cap, average cap, or good cap.

Then network with someone local to the area here on BP and try and verify the advice the brokers gave.

We're in unique circumstances in that we both have quite high, verifiable incomes and great credit, just not much in the way of liquid assets we want to utilize in the beginning.

. $116,000 average)Located in a desirable neighborhood with SFH and MFH mix close to an elementary school.Gross Income $14,400 annually (verified currently getting $600 per side rent).

Look back through previous sales of these properties to perhaps verify.

You need to do a background check on them (credit, criminal, and prior evictions) and verify the income.

But you should confirm/verify the information with county assessment data (or tax data... somewhere you can see what property sales were recorded).

Knowing short sale sellers, I'd verify any deposits/escrows up front at contract time.

In addition, I will also verify the income amount by looking at pay stubs, tax returns, and award letters.

In Indiana, I suggest you subscribe to a VERIFIABLE POF source such as http://www.dohardmoney.com/loans/us/indiana-state (just click on "PROOF OF FUNDS") available on-demand 24/7.