All 3 parts are critical to being successful here and we’ve been doing it with todays prices, todays competition and todays interest rates.  

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

Both offered up to $40k, 12-14% rate which is higher but not bad for an unsecured personal loan. 

PS Rochester and Buffalo were ground zero for much of this stuff also there were groups buying those homes for 10k packaging them up and selling them for 80k to investors from England. the city / state finally cracked down on that and there was some folks that got in trouble on the criminal side of it.. you can google it.. wont mention names but you can find it if you dig deep enoughBut this is nothing new.. buying hood rates for pennies and selling them for dollars to foreigners and unsuspecting out of state folks. 

But those have higher rates. 

This is not normal in a rising interest rate environment. 

With some of the new properties they find they are getting great interest rate buydowns from builders. with equity of 1.2M you have many options on where to move. 

What if your occupancy rate is 90%?

A lender, "how about interest rates, wow."

Additionally, they have another property which has appreciated in value, carries low interest rates, but has negative cashflow and essentially feels like it just locks money away.