Hello BP Community, I am under contract to purchase a new construction home as an investment property and I am the RE Agent.

BUT The points they charge and interest are both way higher than normal, on some deals I ran numbers the points and interest were going to be 20k on properties where the ARV is 100k so you have to get properties at such a low price to make it work that it is so hard.

Property has been owned for about 3 years now.  

I'm not selling anything, just trying to let people know how it works. 

Your son will be forced to sell or refi, and I bet you that this deal can't handle that situation. 

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?

Assuming this is an 8 cap neighborhood you'd have a ~$420-450k value within a year (unless property taxes are crazy high) when leases would renew since it'd be valued as a commercial building with the office space.

Even though I wasn't a good asset manager, I made money on my properties. 

Look at quality properties (not something that is cheap and looks good on paper). 

Existing tenant stayed in my rental property 3 years without rent increase.