@kathy ReissmannFrom a purely pragmatic perspective you might consider the following points;Sounds like the cost of 12 months money to you is 20%, if so depending on your level of experience, it's not unrealistic in hard money terms.It's never a good idea to do business with family, but if needs must, you must and always make sure you have your paperwork in order and you are going to be able to meet your obligations.Always take a professional position when somebody tries to exploit you like this. if you still need the deal go back and negotiate with charm and a smile, business as usual and get the best possible deal for yourself.Best of luck with it!

Our shared housing model makes the property cashflow to the point that it is worth about $150k on a 10% cap....and that's what our back-end buyers are after....pure cashflow with no reference to appraised value.Once you qualify, the 203 is a great program for you.  

His assumptions of 12% average return on "good growth mutual funds" is pure hogwash.

This was purely a mindset goal...next 10 will go a whole lot different with the numbers, lol.

The long and short of it there are some people that call themselves REI's that are, purely in my opinion out to take advantage of whomever they can.

When its based on pure speculation then I think it can become destructive to other people's understanding if they don't understand that.People come on here and get advice that can drastically alter their lives, and I deeply respect the responsibility we all have in communicating our OPINIONS in that environment.

Alright...that is all done and I can move on...phew..So heres how the deal broke down.I paid 162K for the propertySpent 33K on the rehab which took 8 weeks.Closing, holding, and closing again cost a total of 16K.The property was on the market for about 3 weeks until I received a full price offer of 264K.The realtors got almost 15K.So my end of the day pure profit ended up at 38K.In retrospect, the deal was a little weak to begin with and my estimates were completely out of whack ( I estimated 12k on rehab and had comps of 230 - at least one blunder saved me from the other).

But, I see no issue with the conversation going in the opposite direction, unless it could be demonstrated this was a constant "bait and switch" tactic used by the agent purely looking for listings.There will be a lot of opinions on this one going both ways.

Its a much more targeted list and a lower chance that they are getting 50 letters a month like pure absentees.

If you rented out rooms you could live for free saving up for a pure rental.If you later decide you no longer are interested in renting the higher income house.