I am working on my first rental property purchase in Socal and trying to close but I have encountered some issue with the financing.

Has anyone ever encountered a institution that would secure a line of credit using a current 401k as collateral?

-Has anyone ever encountered a property in a not-so-great area where the reapirs needed to fix the house cost more then what one could actually sell the house for?

The problem I am encountering is that my expenses are well beyond the 50% expense ratio you set in your example.

(Note - Yes, I will definitely consult with an attorney asap but before I do I just want to see if anyone here has encountered a similar situation).

Unfortunately, you are encountering an example of this in real life.Now, since Victor N. says that CT is just like PA with respect to foreign loads on a tenant's utility bill, and you and your electrician both have determined that this is truly a foreign load that the tenant has identified - you have not done the right thing, you must correct this ASAP.

So they will give new wholesalers a big credibility barrier since any seasoned rehabber or landlord will have encountered tons of these guys.If you work at it and find really good deals you will be the most popular person at any REI event you go to.

So as to my first line of my first post, we have encountered an oxymoron.

We hope to move back to Seattle in the coming years, and boy is there sticker shock in the equation!

The best part in my opinion is that there are always experienced investors there "due to the fact that if your property has multiple police/ tenant encounter the property owner must attend this meeting to keep property" that will usually answear questions before she can get them.