I purchased a distress 80 unit complex and after working on it and depleting all my funds I have been left with $285,925.24 of uncollected rents/damages created by tenants I have evicted or have broken the lease from April 2007 to present.

If I paid it, I'd deplete most of my savings.

Our financing covers the rest, including interest reserves (which are refunded if the loan is paid off prior to them being depleted) and funds for the actual rehab.Points can range greatly, the more aggressive the funding, the more points there are.

Yes it brings in cash right up front, but after that cash is depleted, there is no money for future upgrades.

For one, the large balance on your credit card (or depleted savings) is an albatross around your neck, a large point of stress.

I can comfortably invest a max of $30k by depleting my mutual funds (which earn ~6.5% a year) and possibly more if my parents want to get in on this.Thank you!

If you need to pocket the money rather than set it aside for future expenses, you are undercapitalized and should not have rental property until you can set aside cash.Good businesses do not run by depleting the cash.

We also found we were depleting our savings putting 20% down per SF house, and the market recovery meant that savings from our jobs and rental property cash flow was taking longer than we liked to accumulate to the point we could move on the next, more expensive, SF house.

As for the reserves, the 60k would not deplete all of my funds but it would eliminate a substantial amount.

It would be tough to cover this and the down payment because it would deplete all my funds.