It should take me around 3-4 more months to save the additional funds.

If we had hundreds of loans out, we’d have enough monthly income to aggregate the payments into additional loans—but we don’t.If you do this, your note will have to have a compounding clause in it, provided by your lending attorney.

In the case of investors, they still require a 20% down payment, additionally there is a 2.25% funding fee because the REO was purchased under a VA loan. 

Avoid C-Corps, as they incur double taxation.Use LLCs for rentals and consider an S-Corp election for flips if income justifies the additional complexity.This post does not create a CPA-Client relationship.

Additionally, their marketing was very compelling.

This is a great way to build experience and get some quality rental properties under you while keeping your liquidity up to go find additional properties.

Additionally, it needs a new roof, new HVAC, new plumbing, the septic is over 30 years old, the well could use a filter, a few new windows, none of the electric is up to code… and it’s on almost an acre of land….

Maintenance/cap ex, insurance, if a rental PM, bookkeeping, misc.The fact you have a loan means 1) leverage 2) equity pay down.In addition, there are tax benefits.So I will do some rough underwriting as an OO non-rental at 95% LTV (because FHA has some undesired consequences that make the 1.5% difference in LTV worth avoiding the FHA).equity paydown: 20% (using OP interest rate at 95% LTV and not counting closing costs). 

That said, if you feel you want to go above and beyond, then could could try contacting some of these apartment complexes directly and confirm her story with them but if you can easily find another qualified applicant why would you take on this work and additional risk.

The hard money 10% plus additional thousands in closing costs was too much to swallow.