This is based on a 30 year amortization schedule because it would be insane for to be paying the actual loan amount in 7 years - that would put in a major cash flow problem.

After reading a few forum posts about the Seattle market and seeing a few MLS listings for multi-family homes, it seems like people are recommending to buy properties out of Seattle proper due to strict regulations for renters and price increases.I was originally looking in areas such as Ballard, Fremont, Wallingford, Greenlake because of the influx of technology employees such as myself but it seems that majority of these areas have increased prices and strict regulations.

Colliers have recently reported 7% rent growth and there are some major employers moving to the area.

I would certainly make sure you did environmental due diligence including having the sellers sign an environmental questionnaire indicating whether they know of any environmental concerns.I have seen environmental contamination from gas stations go under major interstates and impact properties several hundred feet away.

Yet somehow all the economists and major investors have Austin continuing to be one of the top 5 cities to invest in. 

But be careful because this is also an opportunity for them to sell you a major B.S. line or try to manipulate the situation.

The sellers have agreed to pay a majority of the closing costs and to fix some vinyl siding that needed to be repaired.

Depending on the location of the property, $100,000 per unit will provide you with a nicer investment, but will probably not cash flow very well unless you plan to purchase in a major metro.

The majority of the value may involve the desirability of the land, not the structure itself.

It is highly unlikely that any other investor will outbid you at a foreclosure auction to acquire the remaining half of the co-owner's half interest in the property -but in the very unlikely event that someone does outbid you, then you'll have recovered the majority of your costs, plus interest and you'll get a new and likely better partner.