. - We almost feel sorry for the foolish/naive DIY landlord that inevitably falls for their sob story and accepts them.We have had 2-3 that have gone through our process and so we accepted their multi-month payment.

In my case, I have residential rentals in one LLC, commercial properties in another, self storage in a third, and my real estate company operates in a fourth.

The biggest downsides are that they usually have higher rates and require larger down payments.

Net Income: 100k~ depending on overtime workedHere is a breakdown of the potential property we would be looking at buying as a long term investment. 3 Bedroom, 1 Bath, 1000sqft, attach single car garage, fully fenced property, needs no work and would be in a state of immediate ready to rent.Purchase Price: $289,90020% Down payment: $57,980Mortgage Rate: 4.5% Amortization: 25 YearsProperty Tax: $3185 annuallyBi-weekly Mortgage Payment: $592Rental Details:Monthly Rent: $2600Mortgage: -$1184/monthProperty Manager: -$260/monthLandlord Insurance: -$105/monthProperty Tax: -$265/month15% Put Away: -$390Leftover: $396Does something like this make sense to jump on?

Most people never actually buy the home, so they forfeit the down payment and move.

The mortgage payment is already high and my life circumstances have changed, making the payment even more of a stretch (not impossible, but definitely above the recommended percentage of take home pay).I am considering selling the first property next year (which has about $200K in equity) to do a mortgage recast on the primary and get my payment to something more reasonable.

Finally, ask about pre-payment penalties and do not ignore them as rates might fall in the future.

Purchase price: $242,500 Sale price: $430,000 I used private lending to cover the down payment and closing costs, then paired it with a hard money loan to fund the project.

We have created an investment plan for them to buy shares of a property, against what we put down for an initial down payment, so it accelerates there returns.

@Tom Stevensonyes, when I BRRRR I typically use my own cash for the down payment, and a hard money loan for the balance.