Search CAP rate on BP.  

So the bank would determine the cap rate in your area and the property would be assigned a value based on it's cap rate

Meets 2% rule and the 50% rule, cap Rate is 15.2 and based on my proforma numbers will cash flow just under 1000 a month for a 4 unit.  

There are NO rent credits.Requirements:Location = Any, it doesn't matter to us.Annual Cap Rate = 10% or higherAnnual Cash-on-Cash Return = 15% or higherLTV = 65% or LessProof of Funds = 10% Option Fee, Repair Cost & 6 months of Lease Payments**ONLY NON-Owner Occupied Properties**Fees:$2k - Loan origination Fee (included in Loan)$2k - Processing Fee (included in Loan)10% - Option fee (Paid at signing of Lease Option)5% - Increase in Option Sales Price from the Original Purchase Price2 Months Rent - Security Deposit (Paid at signing of Lease Option)What we need to evaluate a deal: Property Address Minimum of 5 exterior photos & 5 interior photos Purchase Price Market Rental Rate CMA from the MLS and from a Licensed Realtor.

He is asking $50,000, the Tax Appraisers office lists the home at $51,000 with a CAP of $58,000.

I'm not considered an RE professional so my deductions are capped against my ordinary income.

You don't want to trade a property number cap for a DTI cap without realizing it.

Roger that, understood.In FL, the difference to the seller for the increased sales price is only about $13.00 per thousand.The seller pays the Doc Stamps on Deed and Owners Policy in most counties in FL, except for like Broward, where its customary for the seller to only pay the Docs Stamps on Deed.So in most counties, for every $1,000 in higher sales price it only costs the seller $7.00 for docs stamps on deed and about $5.00 to $6.00 in Owner's Title Policy, therefore my above example of paying $10,000 more only cost the seller about $130.00 more.That is unless the property is not homesteaded and/or the seller has to pay Cap Gains tax, then of course the sales price would need to be structured in a way to compensate.But getting past these intricacies, in General, if realtors and loan originators, they will give their buyer more loan options and better ensure more deals close.

For loans between $60K and $100K, the lender's loan fees are capped at $3000.  

I'm looking to talk to an agent with knowledge of the local market, different types of investments, typical cap rates, etc.