Is this an attractive property for investors?

One of the properties I ran cashflows on seems initially attractive -- 12.6% cap rate (and 28.9% CCR assuming 75 LTV / 30yr fixed rate loan / 6.0% interest, 50% expense ratio, and assumed rent 12% below rentometer.com's median rent for the area in which the fourplex is located (monthly assumed rent is 2.11% of purchase price)).Though my projected return ratios are attractive (12.6% and 28.9%) on this property, I'm not sure if the magnitude of the return is large enough.

Will it attract people who ride scooters, factory workers or students?

Other homes in the same street look like hell & yet their taxes do not increase at all.We then find the increased tax burden is generally too high to make a buy & hold viable esp after our rehab expenses.The most recent example was a 4brm/2bth vacant for 4 years that we bought for $23K rehabbed for $8500 (It was originally assessed @ $38,000).

Attractive kitchen cabinets, lighting and stainless steel appliances seem to get more bang for the buck Garage door opener you will recover the cost and it will help you with potential prospects, improving the garage may get you some additional consideration from the appraiser and the prospect.

Although I am a big proponent of using OPM, you may want to keep in mind that each time you apply for an investment loan you increase your debt to income ratio which could make obtaining new loans a bit more difficult.

There are some advantages to this:1) Complete control of the property2) Better Multi-family loan terms3) Attractive package to sell to a develeoper/rehaber down the road to sell back as Condos some time in the future.I'd like to hear any comments as to the pros and cons of a deal like this and any experience others have had.Thanks in advance!

BTW, I ABSOLUTELY WOULD NOT tie up the property in contract if I am unable to get the seller to agree to a well below market price that would be attractive to an investor.

If the investor does not find real estate investing attractive, over time, you may be able to change the attitude.When you have a passive investor who is willing to invest in real estate, to give the investor complete confidence in knowing his money is secured and he is in control should things turn bad, let the investor buy the investment opportunity.

Greg Fend, the lease approach mentioned by Wendell De Guzman sounds similar to my dad's approach.In lieu of locking in a nominal % upfront (usually 2-5%) for the option, you increase the rent.