Aaron without reviewing your liquidity and net worth statement and end goal it's hard to give direction.Any stabilized apartment building with a true 10 cap is going to be a rougher area.

As I'm sure you know, in the better neighborhoods you should expect lower cap rates but better tenants and potentially more appreciation... in the lower income neighborhoods, the reverse.  

That is 10% Cash/Cash and 7% Cap Rate. 

Here are the numbers:Asking Price $495,000(they had it listed at 399 about a year and a half ago)Year Built: 1995(10) 2/1 units, 1100 sq ft townhouse style with laundry in attached shed, very poor design on laundry in unheated space)$6175 Gross monthly rent (9 units@625, 1 @ 550)$74100 Gross Annual$6272 Taxes$1900 Insurance$7410 Property Manager (figuring 10%)$950 Garbage$4968 Water/Sewer$7410 Maintenance and repairs (figuring 10%)$1200 Snow/Lawn$7410 Vacancy (figuring 10%)$37520 Total Annual Expenses$36,580 Net Operating IncomeThinking we could get it around $425,000 so 8.6% cap rateI know I need to factor in the loan/closing costs, I'm in the initial phases of finding out what that would be.

Nathan,There are no 1st and 2nd mortgage combos to 100 CLTV allowed in residential investment financing---mezzanine is exclusive to commercial funding requirements ---seller contributions are capped by FNMA and won't allow for 100 CLTV...The only way I know of securing 100 CLTV for investor financing is combining a conventional 90 LTV (need to go FULL DOC to get this) with an unsecured LOC.Regards,Scott Miller

Im amazed that I keep googling different variations of this phrase and Im only pulling up payday loans or bs marketing ploys.I would use Prosper.com to try and fund loan but the site puts a cap on the % I can offer.

You are going to have a difficulty with; 1) Getting 90% financing on a 3 unit [portfolio lending caps off at 75-80%], 2) Securing a rate of 7.00% [unless you are willing to buy down the rate] using a NOO/investor approach.

but that isnt the real truth the real truth is that they wont to have the home owners to live the high life for a littel while and then after 3 or so years when they start to cap out on there adjustable if they didnt pre pair for it then they move the next one in a vicious cycle its a desingned to keep the economy working

Does anyone understand this new bill which was passed to pay to forgive mortgage debt? Effective after Jan. 2008 for sale of any residence that previously was used as a rental or vacation home. I'd appreciate some ...

the cap rate is used to value the property based on its future income payments with respect to present day values.