Remember that IRA's gain interest tax free and can be taken out tax free (if taken out before the age of 59 yrs 6 months you are subject to a 10% penalty tax).

They will come off 7 yrs. from filing date.

Lets look at an example.Assumptions180k purchase price5% downContractor comes in and says for materials and labor he can do the job for 35k.Assesor values the house at 260k ARV.So 180K - (down payments 9k) + renovation costs 35k = 206k.So would the value of the loan be 206k , 30 yrs fixed.

Locking the rent in at a rate somewhat below market could somewhat lower the value of the building in the coming years (since the rates could be below market), but if we could maintain even a 9% cap rate (i.e. let them rent at 10% less than they are paying now) I can't imagine having trouble securing financing.I mean 9% cap on a AA secured property for 7 yrs gauranteed would be amazing.

The rent it brings is about $1200 /moIn loosing this income there is the potential that it might domino to other parts of my life, including my current residence, SO I AM REALLY LOOKING FOR A FINANCIAL ANGEL TO HELP OUT HEREThe thing that seems to be a concern is that it is built about 50 yrs ago.

Projected 300% + ROI over 2 yrs.

It is obviously being used as a shack of a home, the owner is 3 yrs behind taxes with several preforeclosure hits on the tax role over the years.

The area used to be a neglected part of DC when I first moved here about 10 yrs ago.

I've had great success with State Farm for the past 20 yrs.

Hey Andrew I know this post was over 9 yrs ago but have you had any luck?