I really enjoy the Poconos, made many visits to the area growing up, sounds like this will inject a lot of new business into the area and definitely something to keep an eye on.

@Derek, What if the equity is injected (there is no silent seller carry as per bank guidelines) and borrower gives a personal loan after closing and uses a PG as collateral for that personal loan?

Tarrytown, Clarksville, and Zilker are some of the most highly sought after locations but will require significant capital injection to cash flow.

Not many are building new in this climate and the cash equity players want to large of a share to inject capital.The other thing is there are so many fractured projects you can buy from banks and re-purpose for a fraction of replacement costs.Material costs are stable but labor is cheap right now for construction.In my area usually they just set up an LLC for the project with a JV equity agreement.

@Tomiko Graves I'm writing to inject a little humor into your situation but the more I think about it the more I think this may work to your advantage.

Glossing over that difference injects a lot of misunderstanding and silliness in the process.A flip renovation focuses on getting high-end finishes and touches into a project.

I would recommend taking the money as a gift and offering them a % of the rents as part of their injection of money.

Never got told the deal was not a good fit or was off the table.Never got a call to setup the call with the previous client.Never got the due diligence package that was being "sent over by end of day tomorrow".Never injected politics into anything... where did that come from?

A way to overcome the obstacle of buying a “bubbly” asset is to inject value add such as renovations or adding bedrooms and/or exercising a more profitable rental strategy such as MTR for your units. 

Cash-flow and California don't really go hand-in-hand, but you could consider other strategies or figure out an amount of cash you're comfortable injecting into a rental property to hold it.