So a lot of homes will have soft spots.

But pack some bath towels just to be safe.

@Ryan Alexander a little low on soft costs, I use 8% vacancy, 5% repairs and 10% capex.

After listening to well over 100 BiggerPockets podcasts, reading Rich Dad Poor Dad multiple times, and scrolling the forums for hours, I decided now was a good time to introduce myself.I will be closing on my first deal April 6th (already under contract and non-contingent), which is a 17 unit apartment portfolio in East LA for $1.4M.My goals for the future are to continually educate myself on all aspects of real estate, and start to build my own SFR / Multifamily portfolio.

Why are you going to Wells Fargo and not a local bank or credit union? 

However, that is a joke and it will get made permanent. 10 years and 5% + CPI was just a soft way of introducing it.

Unfortunately they are just soft liners.

I use both as a RE investor between commercial and residential as both can be used on 1-4 unit properties (non owner/investment occupancy).The pro's of commercial/portfolio financing from local credit unions and community banks are that you can:- talk to a local banker/lender who is interested in building a relationship with you over time and is flexible to make a loan as long as its financially prudent and you show a track record- ability to build a track record with- less documentation scrutiny than a fannie/freddie conventional loan which is more ridged because it needs to be sold to the secondary market so all boxes must be checked to do so (otherwise the loan is unsellable or undeliverable)- is cashflow based via debt coverage ratio or DCR method of qualification (Net operating income / debt service) - can fund to LLC's, entities, and businesses with personal guarantee (PG) usually- can do unique loans like cross collateral or blanket notes across an entire portfolio, can do rehab/construction + permanent financing into one (one time close products), can do soft liens and releasable upon progress on your projects so you can leverage equity with temporarily encumbrances, unique disbursements on credit facilities,etc Hope that helped compare the cash out options.

Add the city fees on top of all that and the soft costs and things can add up fast.   

I have a background in construction, both residential as well as industrial- so I believe that I have a fair amount of experience to well evaluate a property's full potential and ARV.