My assumptions are: a) the hard money loan can be arranged relatively quickly since I know the potential lenders well, allowing me to close quickly if needed, and b) the DSCR loan will take longer to get (as a newbie) and that its interest is signifantly lower than the 12% hard money loan.

I made the following assumptions:1) $50K annual investment from W2 job. 2) 8% annual CoC return (cash flow distribution), less 20% tax rate. 3) 5 year hold for each investment with 50% return at the end of each investment, less 20% tax rate. 

My assumptions have been correct, the deals don't seem to be hitting the market like I'm seeing.

A simple hypothetical example (please correct me if I’m making any assumption mistakes) based off easy math:Gross Profit = 50,000Fed.

@Ian Whiteman not too sound like an a$$ but it seems like you, yourself, don't have enough experience to be giving me feed back and/or you're making assumptions that I know of only one way to fund a deal, which is to use only my money. 1.

You will be obtaining a commercial mortgage and the bank will go through it's underwriting process with an assumption that 1 apt is vacant at the closing. 

SEEMS PEOPLE ARE PREFERRING SUB TO OVER ASSUMPTIONS IN MOST CASES.

(LL/PM holding total original SD) If, on the other hand, you do NOT have proper move in documentation, it won't matter what condition they leave it in, as most jurisdictions will make the assumption it IS being returned in the same condition as it was...you have no proof of anything different.

I think your cost assumptions are pretty accurate.

My initial thought was to assume the mortgage at its current rate (I've never done an assumption) and give him the remaining $40K+ in cash.