@James WiseThanks James - re-read the Ultimate Guide and its a very solid synopsis.

Edited to add: I just re-read it and it does state that there has to be a documented sale pending for that to occur though.

I would echo that you should read, re-read, and probably re-re-read all documentation the sponsors provide for a deal. 

I had to read this twice. first, I thought you said you had a 5 plex @ $160000 fully occupied. and needing only 4 units updated.after I reread it I see its an 8 plex that needed 7 units renovated. sounds like an even better deal what are the rents and what class property is it? 

Re-reading, I do believe you answered a question I had.

I think if you re-read the quote you referenced from IRA Financial Group with the benefit of the information we have provided here, you will see it mentions that real estate acquisition debt is exempted. 

It is all quite complicated and needs to be written out so I can think about it, re read, and adjust.

When I need to reread them again, I'll check them out.

Understand and re-review your PMA:  Do this before the tenants move in, re-read your entire PMA and highlight questions of concern. 

I recently re-read the "Ultimate guide on Estimating Rehab costs" and while it was really helpful and something I'll use when I start getting into the nitty gritty, it didn't really tell me about how to offer on a house I haven't actually got into. 2.