Yes, they drew me in with a very low APR and points, but the process to prepare for underwriting has been daunting to say the least. 

The offer sounds tempting since  the group has to finance about 3M$ (the rest comes from a bank with a low interest) and the building is bought about 1.5M below value, so when we sell we should expect a 50% return when selling which should be 3 years from now.The thing that bugs me is the way the building value was evaluated, i am copying a section from the presentation:"Market activity has shown similar properties consistently trading in the 4.75-5.25% cap range (refer to “Comparables” slide for specifics).

Sometimes though it is a response to a low interest rate enviorment, or higher demand. 

If you can get low enough rates to offset the loan origination fees and title work then go for it. 

I have a few that have told me the rent is to low.

Your income is easily enough to get into a nice multi with an FHA loan for low money down.Happy to answer any other questions you have, just hit me up!

Cash on cash = total annual cash flow divided by total cash invested.Total cash invested would be down payment plus closing costs.Your ROE will be very low since you have been paying down the mortgage.

For me in the specific subject property I was asking for, I needed a long term (25-30yr) fixed rate refi, which is usually what I look for to keep my payments as low as possible.

It is a higher risk higher potential reward way to buy property, but it can go wrong especially with a low number of purchases.

If you are handy you could divide the closet with a solid wood 12” shoe shelf and have a high and low bar on either side...low bar removable for dresses.