This allows you to purchase a place at 5% down and renovate as you need to.

Thank you so much for taking the time to respond.Here’s where I’m at in my journey:I don’t plan to rush into purchasing my first property.

Last year, I purchased a SFH under market at 7.65% interest rate and did some rehab to up the value.

The first purchases are likely going to be California, Montana, and Texas.

Our plan is to purchase again with a better mindset of turning that into a profitable rental.We have diligently completed all the necessary steps and are on the verge of signing a management agreement with a property manager.However, we are experiencing some doubts.  1.

I am assuming that even if you strucutred it with a higher purchase price (85% of value) and pre-paid rent it would potentially still be frowned upon.

Also, the current system I use for LTR won’t be sustainable as we continue to purchase.  

Was that purchase money, rate and term refi, or cash out refi?

Your 'cost' should include everything, from land purchase, soft costs, holding costs, and hard costs.

So the consequence of "give em the hand-out, so you can put a knee on the neck and cram other stuff down there throat" is one that buys truckloads of animosity and ill-will.