Study the market.

Hey William, great question - Conventional has limits but have you explored non-conventional DSCR loans?

We have a few STRs that we have done cost segregation studies on.

*Note that we interchangeably use the labels: Lodging House = Rooming House = Single-Room Occupancy (SRO) = Co-Housing PropertyThe building has 3 kitchens and 4 full bathrooms, on 4 floors:3rd floor: The 3rdfloor is ‘off-limits’ to the 1st and 2nd floor tenants, so the two 3rd floor tenants enjoy the exclusivity of their own entrance, and a kitchen and bath shared only with one other unit, plus some distant ocean and Boston skyline views.2nd & 1st floors: Eleven units share 1 kitchen and 2 full bathrooms, one on each floor.

Do you really believe  that someone with no capital, no experience, and limited education provided by 2 weekends at a guru boot camp is really going to be able to earn $100k annually by finding properties experienced investors spending $10k monthly on marketing to find have somehow missed, and then negotiating prices 50% below real value and flipping the properties to seasoned investors?  

You have to go in person for an auction, which limits competitive bidding. 

The definition includes, but is not limited to: Negotiating, promoting, or advertising the sale, exchange, purchase, or rental of real property, or the granting or acceptance of an option to sell, exchange, purchase, or rent an interest or estate in real estate or a time share.

While you will need an engineering company to complete the Studies, you will need a tax preparer to file Form 3115 to do the catch up, as suggested above.

The name of the borrower then you of course still go after their LLC as well).So the seller sold the properties to the investor subject to existing loans (and the investor is sourcing financing even though he has limited equity)? 

It will limit the number of people who are interested in your property and you may end up having to rent it to lower quality tenants and / or below market rent.