TRIGGER WARNING.

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

Could trigger the loan to be called and you'd have to refi with a DSCR at a much higher rate.

He is a moderator for BiggerPockets and is an extremely active investor around the Chicago Area when it comes to development, flipping, and contracting. 

@Jonathan Greene, that's an extremely good point. 

You cannot change the "Vesting" of title to an LLC without triggering the "Due on Sale".

Purchase price: $290,000 Cash invested: $60,000 Single family residence in an extremely fast growing community.

I have cleaned up a number of these deals over the years.. they are all great when they are working and everyone is on the same page but when they are not.. there is extreme risk to the original seller especially in Texas were a bank or lender can get a money judgement on purchase money loan.. out west not so critical original seller just gets their credit trashed if it was not already.. but there is no money judgement available to the lender for a purchase money owner occ loan in first position.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.PM us if you’d like to discuss this logical approach in greater detail!

Generally, out of state owners have property managers and other ways of managing that makes it extremely difficult to meet material participation requirements.