Its short term, the annualized returns can be well into the teens, and you have the safety of a low LTV secured by a 1st trust deed on a local property.

If we can continue to buy with a good Margin of Safety/Exit Strategy with solid Rental Rates, how can we loose?

Going to safety expecting very bad times ahead or expecting some terrific buying opportunities?

Some will say to watch for over leveraging and I can see the risk, at some point equity is needed as a safety net, but to start, gimme gimme gimme.I'm looking for buy and hold opportunities, passive income for retirement in the form of multifamily rentals.

I was thinking generally (and hypothetically) along these lines:* Deal with folks where we have pre-existing relationships* 10yr fixed rate - pay around 7.25% fixed for 10 years (this would be set at loan origination around the 10yr tsy plus 5.0%, or possibly the 30yr avg fixed rate + 2.5-3.0%); interest only ideally, or possibly 30-year amort* Right by borrower to substitute collateral to maintain the LTV (if we want to sell a property)* 1st mtg, 75% LTV on new appraisal value* One investor per property, in 1st lien position* Property rehabbed, seasoned for at least 90 days with tenant in place with term leaseHow have you addressed lender concerns around investment safety and illiquidity?

I now have a solid:Purchase AgreementAssignmentandSub-Assignment (for other wholesalers who I'll offer $X(ie: $5k) to help me find a buyer)I've worked hard getting these set up the way I want (to provide safety yet stay short and look aesthetically pleasing), but I feel like they're pretty solid,look good, and are concise.

However, the heated and gross square footage and number of rooms on the appraiser's website matches the information in the MLS ad, so I assume the county at least knows about this conversion, although I can find no proof that it was ever permitted.Has anyone here ever had any electrical or safety issues with tenants after buying one of these conversions?

Don's list is quite similar to his.The only thing I have to expand on is before you start demo/trash-out, complete any critical safety issues that may exist before you break out the crowbars.

You should put your own safety and your brother's safety first.

When a property has been vacant for some time (the utility company knows this from their records), the utility company can consider it a safety hazard to turn on the utility service without some inspection and repairs being performed first.And repairs are probably something you wouldn't want to do.Also to add to his item #2, some utility companies either want to see proof of ownership of some sort, or a lease signed by a tenant and the known owner, to turn on utilities.