If you bought an existing home and it had a massive problem your inspector didn't catch, your deal could go under.Am I wrong to think about it this way?

Now dont get me wrong purchasing power is something else all together.

Thanks for a detailed reply mate however construction is very high risk proposition especially from overseas and has potential to go wrong on a lot of fronts together.

hold some of that initial 100,000$ for reserves. if you spend it all and something goes wrong you wont have time to accumulate profit the first year to really afford to fix anything. then you'd be dependent on personal income or another loan to fix the issue if one arose. play it slow and safe at first while you figure out the game and take some initial hard knocks that are bound to come. 

There is nothing wrong with a property management company doing repairs themselves and making a profit .

It is easy to point out areas where things might go wrong, but I am more curious about the positive side.

Dennis,first and foremost, I pray nothing happens to your property.You're wrong about pricings going up after a natural disaster.

I don’t see anything wrong with paying points if you like the rate, getting it to a level you like is just personal preference.You’re either going to pay it on the front, or the backend. 

@Emily Poerio you're doing it wrong. 

As long as you are always realistic about the collateral value and the borrowers ability to execute the business plan, you can't go wrong.