Most investors focus on “price,” but smart investors focus on structure.A $10,000 discount looks nice on paper—but the impact on your monthly cash flow, debt service coverage ratio (DSCR), and approval odds can be underwhelming compared to the same amount in seller credits.Here’s why:A $10k price reduction might save you around $60 per month on a standard 30-year fixed loan.A $10k seller credit, used to buy down your rate, could reduce your payment by $140 per month or more.That’s more than double the savings—and it improves your property’s DSCR, which can be the difference between getting approved or not.In a world where every fraction of a percent matters, understanding how to allocate negotiation dollars is a hidden superpower.

Double edged sword!  

You should be double sanguine about your assumptions regarding upside potentials before getting into this deal.🔹 Step 1: Deal Structure (as I understand it)Purchase price (effectively):$10,000 down + ($1,600 × 30 mo = $48,000) + ($200 × 60 mo = $12,000) = $70,000 totalMonthly outflow (including taxes + utilities): ≈$2,050–$2,200Current rent roll: $550 + $475 + $400 + $300 = $1,725/monthValue estimate: $60k–$70k per CMA (pending confirmation)🔹 Step 2: Current Operating SnapshotGross Rent = $1,725/month = $20,700/yearExpenses (per seller estimate) = $2,050–$2,200/month = $24,600–$26,400/yearNet Operating Income (NOI) = –$3,900 to –$5,700 per year (negative cash flow today).So as-is, you’d be losing money each month.🔹 Step 3: Upside Potential — Raising RentsRents are well under market (you said).

They used double closing, so I never knew who the seller was - and during the closing, I got no title reports from the closing law firm.

They are very dialed in, raising capital per community, and then cash out refinancing and returning capital.We had considered this model for a portion of a development we are working on, but zoning only allows 20% of the site to be attached doubles and I don't know if I want to try to convince them otherwise. 

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

You're money can go a good bit further than double in the US.

Raleigh median: $446,500 (up slightly YoY) Wake County: $465,000 (flat to slightly down YoY) Inventory: Up >30% across Wake County; roughly 3.6 months of supply Days on Market: 36 — almost double last fall How It Impacts You Buy & Hold Investors: Finally have time to negotiate, inspect, and analyze deals.

Are you keeping each room a single --- just double check zoning you don't max out occupancy or become categorized as a hotel. 

Although the cash flow is not what I thought it would be, the appreciated value has almost doubled.