Here's what I know now:1924 Triplex, total rents of $1935/monthAsking $199k, $40k down, $1335/month seller financeThis guy needs to sell it quick, should I be asking for a lower down payment, lower monthly payment, lower sales price?

If you find a guy with 20 properties you will find multiple banks loaning the investor money because most of the small banks limit outstanding loans or cap the total outstanding loan amounts.

Rehab costs = $30k - $40k (total reno) home can be livable for $10k - $15k.

Paying all cash will get you cash flow equal to half the rent.Cash on cash = annual cash flow / total cash investedThis can often be higher with some leverage than paying all cash.If you manage yourself, I think you can cut the 50% number down to about 36%.

Total rent is $3000/month.

Hopefully you're not just relying on an appraisal from the seller.

I am looking at my first real "commercial" apartment building and like most things I'm starting off small... 6 unit building, I own a 4 plex, 3 duplexes and several SFH's, so I'm not totally new to the game, but all the previous properties I bought at deep deep discounts, all foreclosed, all cash deals, all in terrible awful shape, all are now rehabbed beautiful and cash flowing very well.So this leads me to this 6 plex, its in an area I already own duplexes, I finally this week contacted the owner, turns out he's ready to sell, hes owned the property since 1981 with his brother, his brother is 10 years older then he is and can't do any of the work anymore. so...

Hey Michael yeah those look pretty bad, but there's good news you've WAY over conservatively estimated which is why everything looks so dismal.You include PITI as a line item expense, but then you add in your 50% rule total (10% management 40% expenses), the 50% accounts for the TI(tax and insurance) portion because that is not really debt service so that is probably a good 10-12% extra you've added to the expenses.Also you calculated your CCR which I assume is your cash on cash return.

List your debts from smallest to largest based on their total balances and then pay off the smallest loan.

It is totally our responsibility as parents, to prepare our kids for the real world.