However, it's important to carefully consider the terms and interest rates of the loan to ensure it aligns with your financial goals.

Seems like with the high home prices and higher interest rates right not that finding a property at a discount to market value may be THE KEY to RE Investing.

Or Brokers that just jack up the rate and charge no points and get the rate rebate

I had wrapped my head around residential not around commercial, But to me the deal seems amazing - you guys tell me 8000 sq. ft building7 storefronts on an active downtown street (all rented and currently have tenants)34 unit mini storage in back lot (29 units rented - the rest of the unrented are being used by the current owner)Asking price is $798,000 and owner is ok with seller financingAfter sitting with them today the owner who is 83 said he is ok seller financing and verbally agreed to $715,000 and a 4% interest rate, 30 year note, $100,000 down payment, no early payoff penalty - my lender and real estate agent both came back valuing the property as it sits at $840,000Income = Rentals ($5075) Storage Units ($1935) = $7010speaking with the owner he hasn't raised the rent on either the storefronts or mini storages for almost 10 years - looking at comparables in the area we believe we can raise the rent and storage units easily to push the income up to $10,000 a month 4 of the 7 Tenants have been there 5 years plusCost = Including estimated payment, taxes, insurance ect. would come to a monthly of = $4450that would cashflow $2560 a month at its current with the potential after purchase and rent adjustments cashflow $5460 a monthPending an inspection the property looks in good shape with little to none improvements needed at this timeA quick background I have had rentals before on the farm we own, three houses we rented out so I have some experience) My QuestionsIs this a good deal???

The papers had a chart with the horizontal heading "Average monthly rent" for a 835 sq. ft. unit across the top and on  the left  vertical side was the exit CAP rate  (36 month hold). 

My current understanding is that ADUs may offer better cash flow, although they may not necessarily provide superior appreciation compared to condo investments, considering the anticipated decline in interest rates over the next couple of years.Thank you for your expertise and guidance!

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Your CAP rate will be dangerously inaccurate Good post.

.; rent medians and lower and upper bounds, typical days on market before securing a tenant, local vacancy rates, tenants' typical income, education level, employment opportunities, credit, and rental history).

Is it feasible to be cash positive considering the high interest rates?