Sharing a quick underwriting example from a recent 4-unit analysis. I applied my commercial minimums and pro-forma which I've been told not to speculate.... I’m not pursuing this deal, but it was a good exercise in how small pricing corrections and thoughtful financing structure can significantly change deal performance. The Seller will most likely NOT take my offer since she is making more monthly than what I would be paying her every month. - Seller Price: $245K - Assignment Fee: $10K - Total Price: $255K - Down Payment: $25K - Seller Financing: $230K at 3% interest-only Current rents are $3,270/month. Using a 40% expense ratio, NOI is approximately $23,544/year, which puts the in-place cap rate around 9.2%. With a very modest rent normalization of $250/month total ($62.50 per unit), NOI increases to roughly $26,544/year, resulting in a pro-forma cap rate of about 10.4%. Under the interest-only structure, monthly debt service is about $575, and post-adjustment cash flow is roughly $1,600/month, with a DSCR near 3.8. As the Seller would you accept this deal from me?

https://www.crexi.com/properties/1734436/michigan-boston-edison-historic-district---value-add---multifamily?crexi_url_type=2&eblast_position=8&utm_source=recommended_properties&utm_medium=email&utm_campaign=sales+12_1_25_11_17&recommId=48bc5cba-a6a7-49b4-9755-871aa4d20e95&templateId=140

Perfect. Below is the complete combined investment package summary — everything merged cleanly: the official offering summary, property description, financial performance from the brochure, and your three structured offers (cash, seller-financed, and full-ask owner-finance). 🏘 28-Unit Turnkey Multifamily Portfolio — Decatur, Illinois 📍 PROPERTY OVERVIEW A rare opportunity to acquire two stabilized, renovated multifamily assets located just minutes apart in Decatur, IL — offered as a single 28-unit portfolio. Both properties are within walking distance of downtown shopping, dining, parks, schools, and public transit. Properties Included: One (17 units) Two (11 units) Each property features primarily 1-bedroom / 1-bath layouts, plus one 2-bedroom / 1-bath unit per building. Over the past year, both properties have undergone comprehensive renovations, including: New windows and modern flooring Updated kitchens and bathrooms Fresh interior finishes Exterior improvements Both assets provide turnkey performance with minimal ongoing capital expenditure. Amenities include off-street parking, on-site laundry, and landscaped courtyards — increasing tenant appeal and stability. 🏢 OFFERING SUMMARY Asking Price (Portfolio) $1,380,000 Total Units 28 Lot Size 25,500 SF Building Size (combined) 11,000 SF Current NOI $170,767 Pro Forma Cap Rate 12.37% Price per Door $49,285 Average Rent (current) $667 / unit Current Gross Rent $14,665 / month Potential Fully-Leased Rent $18,676 / month Projected Stabilized Cap Rate 14.5% 🧾 PROPERTY FINANCIALS (from brochure) property one Property Revenue: $148,439.52 Total Expenses: $42,084.10 NOI: $106,355.34 property on Property 2 Property Revenue: $91,179.76 Total Expenses: $26,766.86 NOI: $64,412.90 Combined Portfolios Total Revenue: $239,619.28 Total Expenses: $68,851.04 Net Operating Income (NOI): $170,767.24 Cap Rate (at $1.38M): 12.37% 💰 OFFER SCENARIOS COMPARISON Offer 1 – Cash Offer Purchase Price $980,000

Category Monthly Annual Actual OPEX (from rent roll) $2,302 $27,624 Gross Income (actual) $9,895 $118,740 35% Expense Ratio Equivalent $3,463 $41,382 🔸 Comparison Summary Metric Actual 35% Ratio Difference Monthly Expenses $2,302 $3,463 +$1,161 higher under 35% Annual Expenses $27,624 $41,382 +$13,758 higher under 35% NOI (Actual) $91,116 $77,358 $13,758 lower under 35% Cap Rate (at $900K) 10.1% 8.6% ↓ 1.5 points Monthly Cash Flow (after $3,560 payment) $4,033 $3,396 ↓ $637 ⚖️ Interpretation The current expenses (≈23% of income) are low but possible for a small, tenant-maintained park with water/trash only paid by owner. Using a more conservative 35% ratio gives a truer long-term picture — covering reserves, turnover, and management overhead. Even at 35%, the deal still cash flows strongly, producing roughly $3,400/month net to owner after debt services

, IL 19-Unit Property Operating Summary (Current & After Renovation) Category Before Renovation After Renovation Units 19 Avg Rent / Unit $778.95. $833.00 Monthly Gross Incom$14,800 $15,833 Annual Gross Income $177,600 $190,000 Expense Ratio 40% Annual Expenses. $71,040. $76,000 Net Operating Income (NOI) $106,560 $114,000 NOI / Month. $8,880. $9,500 Value @ 7% Cap Rate $1,522,286 $1,628,571 Value Increase — +$106,285 Price per Door (Asking $700K) $36,842 $36,842 💰 OFFER SCENARIOS 1.Cash$470,000 $47,000 —$106,560 22.7% N/A $8,880 22.7% $24,737 Seller Finance $550,000 $55,000 $495,000 2.6% $2,200 $26,400 $106,560 19.4% 4.04 $6,680 145% $28,947 3.Owner Finance $649,900 $64,990 $584,910 0% $3,000 $36,000 $106,560 16.4% 2.96 $5,880 108% $34,205 🧱 After-Renovation Effect on Each Option (Using $190,000 Annual Income, 40% Expenses) Option New NOI Cap Rate Value @ 7% Cap Value Gain vs. Cost 1 – Cash ($470K) $114,000 24.3% $1,628,571 +$1.16M 2 – $550K @ 2.6% $114,000 20.7% $1,628,571 +$1.08M 3 – $649.9K @ 0% $114,000 17.5% $1,628,571 +$928K 4 – $700K @ 2.6% $114,000 16.3% $1,628,571 +$878K 5 – Cash ($700K) $114,000 16.3% $1,628,571 +$878K Need earnest ad down in order to offer 1