according to the seller these numbers are accurate but still waiting for the Rent leger or rent roll to verify from seller and normally I put each unit at $10k for rehabs but the individual units are in pretty good shape so I adjusted my numbers a bit maybe I could be more conservative and estimate at $330k but I am still in the inspection period stage,but I did come to the same conclusion that the deal is worth pursuing...I'll keep you updated on the progress but if all the numbers are right how would you structure this deal ??  

Appraisers typically adjust their Year 1 proformas up by 3-5% depending on where the tax comps (properties of similar vintage, size, location) are assessed. 

@Juli WoodsAs an agent myself, adjustments have to be made when “comping” a property. 300-400 square feet (at least in my market) is a large enough swing, I wouldn’t consider it a true comp.

@AP Horvath, I am biased, but I would select one asset class you believe in over the long-term that delivers strong, risk-adjusted total returns and make some meaningful investments in that sector. 

@Gabriela Andrade, you definitely need to adjust your analysis as @Tim Herman recommends.

The townhome has actually 2.5 bath...I was looking at average rents for 2BR, just don’t see the TH hitting the 1% (slightly less) the only option I see is to adjust the offer to ensure I’m getting a positive cash flow...Your correct on appreciation, it’s not guaranteed 

There are hard money loans, non-qm, etc, that might not have those adjustments, but the STARTING rate is so much higher that Fannie Mae wins the rate/fee game 99 times in 100.

To me, a good cap rate doesn't adjust with the market environment. 

Not sure if you adjusted your number accordingly, but your pro forma expenses are very high compared to my standard numbers.Here's what I usually use:Vacancy: 8%CapEx & Repairs: 15% combinedManagement: 10%In your analysis, there is no budget for initial repairs.

Once you close you can adjust your financial position with an alternate lender.