The property will cash flow $500/mo or more after all expenses and cap ex reserves, as well as the payment on the SBLOC.

It's not right for every deal, but for cash deals in my area it's workedfor me.

If you aren't paying cash and are doing owner occupancy you may be able to use FHA instead of Conventional with a higher down payment. 

They would require an additional 25 million raise.I was shocked because they don't have anywhere near that amount of cash on hand, nor a credit line to draw on.Newberry was asked if he felt confident that he could raise that amount.

Most of us will go even higher...say 85%...but you have to get the property to cash flow at that level.

@Geoff Engel depending on what amount of available cash you are starting with and what you ultimately want to achieve will help determine your path.

What I'm aiming for are turnkey rentals and trying to max out the amount of conventional, lower interest loans. again, the DTI income ratio will be IMPROVED if the property shows cash flow.

There is a tremendous amount of energy around the long term prospects for the Cape. 

One thing you don't want to do is to buy based on proforma and have a negative cash flow property, especially on your first deal.

Just ensure the agreement is clear and formalized.Pooling reserves across properties might make sense if you’re confident in your cash flow and other contingencies.