I am under contract on a VA foreclosure and plan to rehab and put back on the market in 30-45 days.  

May be he is looking to sell quickly for whatever reason and 100k cash looks appealing to him than waiting for 30-45 days for commercial loan to close with no guarantee.

Property $40,0000 + $3,000 Rehab ($850 Closing) - Rent conservative $700/mo - optimistic $750/mo   (its a 3/1 I have a 2/1 close that I rent for $700 right now)Commercial loan from portfolio lender that will finance upto 85% of broker price option of $50,000 (terms 25yr at 4.35%) as long as DSCR is over 1.25 its over so no issue.Would you ratherA. put 20% down and finance $32,000 ($11,850 in) with $244/mo cashflow on $700  $700/mo- $175 mort- $75 tax- $56 prop man (8%) (I pay 6% because every property over 4 with them drops from 8% to 6%)- $45 ins- $70 repair (10%)- $35 vac (5%) - property management is local and averages 2-3%= $244 ($174 if you figure 10% capex, but some people only do 5% repair then, which would be $209 cash flow)$2,928/$11,850 = 24% cash on cashorB. put 0% down finance $40,000 ($3,850 in) with $200/mo cashflow on $700$700/mo- $219 mortgage- $75 tax- $56 property management (8%) (I pay 6% because every property over 4 with them drops from 8% to 6%) - $45 ins- $70 repair (10%)- $35 vac (5%) - property management is local and averages 2-3% usually 20-30 people per open house I rented my last house in 4 days= $200 ($130 if you figure 10% capex, but some people only do 5% repair then, which would be $165 cash flow)$2,400/$3,850 = 68% cash on cashI live 25 minutes away,  I like the cashflow higher but I have a good W2 job that allows me to invest $2,000 a month of my own income into real estate plus cashflow from properties is all re-invested. 

Class A credit in primary locations (coastal cities, Denver, Atlanta, Chicago etc.) is going for 4-5% cap but I have seen Class A credit in secondary / tertiary submarkets around Seattle (one of the hottest industrial investment markets in the world) going for an 8% cap.

Hello BP,My 45 day selection period was disrupted by hurricane Irma.  

I currently work as the Broker-in-charge for a 45 agent firm.

I currently work as the Broker-in-charge for a 45 agent firm.

The instructor did seem to know a lot about the subject and claims that if he can get a deal at 45% of ARV (very rare), he'll buy right away.

They installed a small job granite countertop for us on a rental in Raleigh, and they serve the Fuquay area 45 minutes from their office.

I cannot afford a higher down payment than ~4-5% right now, which brings me to my main question: is Harrisonburg VA a good market to start out in?