I say run with it.Are all my assumptions correct?

I think I have a possible subject to or loan assumption deal, but I don't know very much about evaluating these deal types.

However, if you are looking to maximize returns you would likely choose scenario C.Scenario A Scenario B Scenario C Scenario DYear 0 (Initial Investment) $ (50,000) $ (50,000) $ (50,000) $ (50,000)Year 1 Cash Flow $ – $ 4,000 $ 3,500 $ 2,500Year 2 Cash Flow $ – $ 4,000 $ 4,500 $ 3,000Year 3 Cash Flow $ 6,500 $ 4,000 $ 5,500 $ 3,500Year 4 Cash Flow $ 7,500 $ 4,000 $ 6,500 $ 4,500Year 5 Cash Flow $ 75,000 $ 75,000 $ 75,000 $ 75,000IRR12.91%14.31%15.56%13.23%Profit $ 39,000 $ 41,000 $ 45,000 $ 38,500There are three things to consider when evaluating a "good" IRR for your own specific needs.Despite there not being a one size fits all for each multi-family asset class, there are general assumptions on what an asset class can expect for an Internal Rate of Return.

For example, with an apartment building, your PM costs (percentage) will generally be less than a single house, your maintenance costs will generally be less than a single house, your vacancy could very well be less (since with a single family house, you potentially lose tenants during a turnover, whereas with an apartment, you have other places to put them), etc.So, I would guess that it's still in the 45-55% range, depending on the condition, age, location, etc of the property.That said, I have no hard data to support this assumption...

These are typically 600- 800 sft. units and I saw them on realtor.com  In terms of why I am looking at these areas, its because my going in assumption is: 1.

So be sure to consider projected cash flow (with reasonable rent increase, expense increase, etc assumptions).Also, don't forget that you will also be making money from the other 3 wealth generators: Appreciation, Loan Paydown, and Tax Benefits.

We have a lead on a nice property that is a VA loan - complete with assumption possibility.  

Since you didn't specify the size other than 2/2 I will make some assumptions.

You work with the lender to do the assumption.  

The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.