My analysis was based off 20% down and gross rent of $2000 per unit.Property Purchase Price: $1,149,600Property Details: 8 bed, 4 full bath + 4 1/2 baths (8bed and total 8.5 baths)Reading the description all it is owner unit occupied and the other 3 units are full.

Their underwriting is often gross rent less PITI, if they are financing, or gross rent less taxes and insurance if cash.  

If they need to pay employees or subs....you pay for work done.   

For example, and maybe you are using gross totals, but you should start with a "Gross Potential Rent" (GPR) and then then deduct physical vacancy, loss to lease, bad debt, and concessions and then sum to GRP for "Net Rental Income," add "other income" from fees etc to create your net revenue.Then add up all your expenses, excluding cap ex and debt service but including property taxes, payroll, contract services and property management fee.Deduct expenses from net revenue and that will give you your NOI.Now deduct cap ex, reserves and debt service to give you your "Cash Flow" after debt service.

So, if you purchased the house with 200sf of additional gross living area (gla), then, theoretically, the assessed value should already include that gla, since you valued it at the existing size (in the purchase price), even if public records doesn't reflect it.

ARV (based on rental income  of $2,550. gross per month, and an $85,000. owner-occupied ARV). 

It's an employee of the business or family member.

SAMPLE COMPS$37,000 @ 10% for 30yrs monthly PITI = $375 and my gross rent is only $250I saved that $36,000 for 3years. 

So there is a balance between using your cash, taking on debt and increasing your adjusted gross income. 

The employee turnover was high.