Posted by PBoone on July 04, 2001 at 10:45:00:
CAUTION, CAUTION, CAUTION!!! Does the agent have a long term financial interest in the property? if so it may be a good deal, if NO (as is usually the case) the agent may be selling you snake oil. RECHECK THE NUMBERS
Gross receipts based on actual income (tax returns) x .60 expense rate = cash flow. this formula is what the bank will use for considering the loan. they will want a minimum of 1.2? debt ratio.