The sample looks a lot like the seller (or seller's agent) found some calculation online and punched it into a formula ignoring performance in real life.If you're a potential buyer looking at investing in this property, take a deep breath and take a step back.

- 4 units or less can secure conventional residential financing (if you want to live in one unit you can even get an FHA loan). (3).

Any other assets that can be secured to a loan?

Hey BP, is it too much to request first and last month with a security deposit?

Hello Fellow Investors:We are considering MLF Investing.MLF Unit: 7 Units, Price: $550,000.00What is the Thumb rule when performing the Analysis for: Closing Costs, Appraisal, CPA + Lawyer Fees, Inspection, Insurance, and Umbrella Policy (1 Million).ThanksKishore

I do like your buy & hold strategy, but unless you really enjoy driving to tenants to collect rent every week, you should consider requiring your tenants to sign up for automatic withdrawal from a checking or savings account.Collecting rents in cash creates the opportunity for payment disputes, not to mention being a security risk and a huge inconvenience for you.If you're goal is to build a serious portfolio of properties, you'll need to resolve the rent payment issue sooner or later.

I plan on focusing on notes, performing at first, and then working my way to non-performing. 

It's best for the seller and provides them more security.

If you do move forward with an offer I would also see if you can get the security deposit transferred to an escrow account held under an LLC you form for the property.

However, I am worried that the only way I can secure financing for any type of flip would be dependent upon the salary that my corporate job (which I am desperately trying to leave) provides me.