., and believe me, it adds substantial value to a project, and requires a great deal of knowledge, experience and time.

With this disclosure, you may have to undertake a Phase I Environmental Assessment - your lender or insurer may insist on it.We had a very similar deal on a multi-family a year ago - when the Phase I and some soil sampling came back strongly indicating remediation, we - and our lender - insisted on placing a substantial portion of the purchase price (30%) in escrow to cover remediation costs.

The good thing is that regardless of the strategy you can come up with some substantial profits if you do your due diligence.

The yield, the total return, collateral, credit and property defects can all also influence the value of said loan.

However your debt contribution will be substantial as opposed to their cash contributed.Very hard to explain the tax side of that here.There are different ways to create a basis: Debt, cash contribution, property contribution.

I have been fortunate enough to have a nice amount of cash to put substantial "skin in the game".

Now, if the property was in poor condition and you were getting a killer deal, and you were planning to rehab it and increase rents substantially.... that's a different story, but it sounds like this is a stabilized, nicely-performing property.If you don't mind sharing, these are basic questions that can help determine attractiveness of the deal and whether there might be room in the cash flow to increase the LTV or ask for partial seller-financing.* What is the purchase price* Is there any deferred maintenance (sizable capital expenditures that need to be taken care of either immediately or in the next two years)* What is the current assessed value, and what is your local tax assessment rate (1% to 3% of assessed value per year is the typical range)* What are the gross monthly rents of the property* Are the current rents at "market"* How long have the tenants been living there, and were any inducements provided to the tenants (1st month free rent, etc.)* Will you use a property management company* Does the landlord pay any utilities (water, gas, or electric) for the units.

Another third won't be interested in buying or selling within 5 years, but use them as centers of influence and for leads to others they know.

We have remaining VA entitlement and have thought about pursuing a new primary, but again we would need to qualify for that mortgage as well, which would be substantially higher than the rentals.

And, no small benefit, I have the cash in hand for both a sizable down payment and substantial liquidity post-closing.My advice to you is to find a solid deal, know your numbers inside and out, and be honest with the lender.