So, as far as I can tell, she is only doing her calculations by the straight “expenses” of taxes, insurance, and utilities, and not accounting for any kind of vacancy, cap ex, or maintenance.

:)Jokes aside, I probably should have been more clear: I'm not suggesting anyone jump straight into a 75 unit.

I also suggest having them help you craft an a straight option agreement as well.Make sure it's clear you have no intention to buy the property but you are selling contracts as a business, and doing this without a real estate license, you're now selling securities without a securities license as well.

Also read all of CC1695 if you want to just straight up purchase it, it's fraught with risk unless you plan to occupy the house yourself.3.

@Terry Woolard -- it looks like a very tight deal with the wind blowing straight against you...but it's worth a phone call if you want to walk through it.

@Andrew Magoun Something that I've had to get used to in this business is having people look me straight in the eye and lie to me. 

I would consider homes outside of a development anyway for straight rental.

Taking a straight refinance gets you a one time shot of cash, and some hefty fees.  

Then, once each rental is done this way and applied to income or debt, they are going calculate your DTI and qualify or deny you based on the DTI requirements of that particular loan program (28%, 30%, 35%, 40%, 60+% back in 2005, whatever).The above underwriting method is know as "washing" the debt of each rental property with its income.Another way that they do it is they simply take the PITI of each property straight to the debt, and the rental income from each property straight to the income (usually also reduced to 75%); rather than washing it first.It is advantageous to the borrower's qualifications to "wash" the PITI with the rental income and then apply the remainder, whether positive or negative, to income or debt. 

Hi everyone, I am considering to purchase an investment property that had foundation repair done by Straightline Foundation company in the area, lifetime transferable warranty is provided. Anyone has experience with t...