From what I understand is that there is always a good deal out there regardless of what the overall market is like.

Our LTV is less than 50% ( yes no risk at all for the bank, and we have top credit score.We already paid the appraisal, environment fee, wasted countless hours etc...The texts in LOI: Financial covenants:-- Min DCR based on actual rents for the first trust deed of 1.25:1.00 based on a 25 year amortization by the end of 2018.And in the loan doc---Property is to maintain a 1.25:1.00 Debt Service Coverage Ratio, tested annually.We would not have paid the fee and sign the LOI, had he included the phrase tested annually.Please understand that the loan  will be for 10 years long, and we are very confident that we will always have fund for the monthly mortgage payment.

I stick with the basics and get a level of understanding and then scale up going forward.

But, also understand the market.

That's itIf I could go back I would have spent a little more time focusing my capital on acquiring smaller multi family and understanding the power of a 1031 exchange.

@Nicholas SchwarzYou would need to know the interest rate for the loan term to understand the interest paid over the three years.

I also have gone directly to the listing agent, and tell them you understand they have to represent the seller with first priority, but that you will accept dual agency.

I mean I understand that if I invest $1000 and make $100 over the course of the year then I got a 10% return. 

Just trying to understand this a little bit more.

@Adam Zach, @Carmen Lewis My understanding they will need to save for a down payment.