If it is COC, you might want to take another look and VERIFY that number.

Absolutely verify numbers are correct with occupancy, cash flow, etc.

You can check the Auditor to verify.

Sorry about that...thought you said it was out of state and you were new at this...If it's local and if you have the experience for this level of rehab, here are my recommendations:- First, verify the ARV.

This tenant was a brand new legal resident in the USA, so no prior landlord or credit to verify.

Make sure the rent does not equal more than 30% of their total income and verify employment.

Would NEVER pay for these costs until I had seen books, bank statements, and IRS tax transcripts from taxing authority to verify no funny business going on.

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.