If the building is evaluated at a conservative 10% CAP Rate, the value of the building is increased by $45,000.We’ve found this to be more readily accepted by our residents than simply charging a flat utility fee because it gives the resident more control of their costs.

Went home plugged in a purchase price of $1,250,000 ($625k for each duplex) then 10% down with a 3.5% interest rate to get him his $5k a month.He told me a 10% DP wasn't enough, didn't like the purchase price and asked If I was serious with a 3.5% interest. 

While I haven't had the opportunity to work with hedge funds, I do remember it being a thing back when rates were at 3%.

It would be more expensive rate wise not closing wise to get a higher interest loan for the 12-18 months while waiting for the permits, also depending on the term of the loan.

Just playing devil's advocate - if you do manage to get 80% of 185k, would the property still cash flow with current rates on DSCR loans?

This investment property was financed through a locally trusted and long time friend that's a hard money lender with an 8.5% rate .I acted as negotiator, real estate agent, funded the purchase, and project manager for this rehab while partner was out of town working and kept him updated remotely.

This investment property was financed through a locally trusted and long time friend that's a hard money lender with an 8.5% rate .I acted as negotiator, real estate agent, funded the purchase, and project manager for this rehab while partner was out of town working and kept him updated remotely.

This is where I found the best rate for me in TX and I was able to lock in a fixed rate back when the interests rate weren't crazy high.

I plan to ease my way into REI by renting out my current house (with those COVID-interest rates!)

Question was assuming both properties (1M and 4M) has a 6.5% cap rate.