Homeowner “B” now owns Property 1 (valued at $300,000) and the $100,000, minus their share of closing costs.Homeowner “A” now owns Property 2 (valued at $400,000) with their home mortgage in the amount of $100,000, plus their share of closing costs.Both these homeowners can save thousands by not paying the closing costs, real estate fees, taxes, and commissions of two separate transactions, because the two transactions are now simplified into just one.Many people living in run-down homes just do not have the resources to fix up their home, sell it, and then buy our completed homes.

That simplifies everything and makes total sense.

I've read some others post and read other pages, I was just wonder about a little more I for about Cash Flow Notes, simplified for someone that doesn't know all the terms and understand the rations like myself.

It’ll speed up and simplify the process, but I’ll understand if you want to continue with the appraisal.

If I over simplify it to will I sell these properties I think the answer has to be yes which depending on how you read the above means it will fall into ordinary income.   

There are several guidelines but the simplicity of not having to worry about the other side significantly simplifies the 1031 process.  

Plus I would own a $150,000 property (assuming the value never changed in 30 years which is very unlikely).Can anybody provide feedback on whether or not I am greatly under-simplifying this, or if I have a basic common sense approach to getting started with investing.  

Finding a university hospital is another popular letting market that can command slightly higher rents and very stable tenants that work a lot so less wear and tear on the property is seen.If I were looking for an investment from a distance I might be inclined to look for a family BTL over a student house as the management and maintenance is often more simplified.

My understanding is the lenders do deals at 65:35 or better for them ratios without worrying as much about proof of income because the borrower has more skin in the game so they are unlikely to default on their debt.I've yet to find these types of mortgages though without getting into hard money lending territory.Glenn:In a {simplified} nutshell that is how commercial lending works - the mortgage is secured by the equity and performance of the business and not by the income and personal assets of the principals  [In practice, the lenders - especially the Big-5 - would like the principals to offer a personal guarantee in addition to the security of the business].

Of course the answer is: it depends ie. there are too many variables, including your own goals and ambitions, to be simplified down to such a bland rule.Mind you, that is why so many properties are over-priced in the first place - so someone like you might come along and Offer 80% of list price and THINK they've scored a bargain.