Your best bet is to do a simple assignment UNLESS your profit is over $20,000.

I'll bet they don't drive Hondas or Saturns.

I understand your 50% rule of thumb completely, I just do not think it is accurate for all investments and I make a personal choice to use other calculations.

Evidence of interim financing is not required; the mortgage calculations will be done the same as a purchase transaction.

And I'll bet Tim has also spent years watching and learning from his Dad.The whole point is to get 'educated'.

I'll bet somewhere buried in the terms is a statement they're allowed to take this action if they believe the value has fallen.I guess this is sort of a problem of our own making.

The value is based on the cap rate calculated from the NOI.

I have an equity partner who is willing to put up the capital if I just manage it...then we both split equity & earnings after his 10% required return.All I've had to this point is residential single dwellings....taking a known calculated risk with this 8 plex but I'm up for the challenge.

Finding an agent would be your best bet coupled with a short sale team that would bring the experience you need to close your deal.Regards,

The deal itself looks like this:$47,000 - purchase$15,000 - rehab$412/month - payment on purchase + rehab, 30 years, 7%$1900/month rent$950/month NOI $537/month cash flow - looks good to me.with your financing and calculations, you have a year 1 cash-on-cash return of 32%.