However, even if we use your numbers, this is a very poor deal.Gross Operating Income $1,519,291 $1,559,291 Less Expenses $518,179 $472,297 Net Operating Income $1,001,112 $1,086,994 Debt: ($9,975,000, 20 year, 7.5%) $964,296Cash Flow: $3,086 per month ($36, 816 per year) or $14.82 per unit per month.If anything is not as you hope or anything changes (like your debt adjusting), this could easily lose a lot of money.Using more realistic operating expenses, this deal is even uglier:Here's how I would evaluate this deal:Gross Operating Income $126, 608 per monthOperating Expenses: $63,304 per monthNOI: $63,304Debt: $80,358Monthly LOSS: $17,054I would suggest contacting the National Apartment Association or another apartment/landlord association and researching the operating expenses issues.

Banks, who are in the business of assessing risk and lending money at a rate that is "risk adjusted" based upon expectation of getting paid, are selling some of their loans at 20% of face?

However, when it becomes a liability to the bank, meaning the bank is holding the paper on it, the bank loses out on the leverage of the $100k in assets and susstains the $100k,a $200k adjustment on the income statement.

I purchased it at a "split adjusted" 83 cents, it's trading at about $59.00 today.

I will adjust down from there (maybe up but I doubt it) to adjust for the 4 factors above.There are limits.

yeah filing for bankruptcy is the safest bet for him. it may sound strange, filing for bankruptcy is not so bad... but how the society takes it takes a toll on a man.if he wants to come out of it read the articlehow does bankruptcy work tell him to be strong and file for it. he can start building his lost credit after 1 year or so...Vik

I'm not sure about the Section 8 thing but I'd be willing to bet they only require you to be up to current code.

One attorney also told me that the way I am doing this that the IRS will bet involved.

So any advise, links, etc.... would be of great help to me.Hello there Louise-Your best bet would be to go to every banking institutional web-site and fill out their broker package!

The difference between your basis and the adjusted sales prices is your gain.Interest is a deductible expense, principal is not.Depreciation for all residential properties is based on 27.5 year schedule.