I am in no way defending David or his business - just amused at the dichotomy.

(not that anyone else didn't but as you said every market is different). of course being new to investing doesn't give me the edge and homes here of course are much higher than i am used to seeing...but i come from southern missouri where the houses are CHEAP and the brand new house we are buying at a "discount" of $150k would only be worth $100k max in MO so its hard for me to compare. the guy in "UGly houses": hes SELLING the house without doing anything with it?

In Wake county NC, I am using a local (3 county) bank that is willing to group in batches like you allude to.

Utilities paid by renters.Total Rental Income/mo = 8724Vacancy = 1308Property Taxes/mo = 625Repairs = 872Management = 698Insurance = 643NOI = 54,925Monthly Cash Flow = 4577Cash on Cash ROI = 9.51%Cap Rate = 9.55%@Andreas Mirza - I am used to LOI's as well, especially for MF purchases, the option to purchase is very similar and gains the same result.Again, thank you all for your comments and feedback. 

I am using GnuCash and am looking for other users to get feedback on accounts setup and how they handle expenses, closings, depreciation, etc.

Peter;A quick funny story I once heard - I don't know if it's true or not, but I thought it was amusing nonetheless.

I find it amusing that people like that call themselves, "Real Estate Investors."

. **** Some amusing comments on this thread, but in all reality you absolutely need to be concerned.

The lender I am using right now has a 5/5 HELOC that adjusts once every 5 years, at 75% LTV for an owner occupied mortgageThis same lender has a 5.25% variable rate for 80% LTV but goes up to 6.25% at 90% LTV Interest only will give you low payments now...and higher payments laterA home equity loan is often a fixed rate second mortgage, instead of a revolving line

I have already formed a relationship with the current loan officer I am using and would almost feel bad not using him at this point because he has been very helpful throughout the process.