Here, a Co-Op marketed an "Investment Program" of notes paid at variable interest rates on demand after a lock-out period. 

DetailsPurchase price: 1.1MReturn (IRR):11.86% per yearCapitalization Rate:5.45%Total Profit when Sold: $1.16MHolding period: 20 years5% down (so that I can take maximum leverage)mortgage rate: 6.7% 30-year fixedVacancy: 5%Management Fee: 8% --> I used this only for calculation but as I will be staying there, I plan to self-manage it.Cash flow: negative $1500 --> My primary job pays decently and I can manage this and have 12 months of reserves.

This profitable transaction showcased our efficient investment strategy and the strength of our partnership with Seth Choate.

-ARV - 500k-Purchase Price - 400k (needs full renovation set 50k) - Down Payment - 20%-1st Hard Money Loan - 250k interest only 3 year term -2nd - Hard Money Loan - 70k interest only (interest accrues to earlier of end of term/sale/refinance) -Rate TBD but assume around 10%Investor would get a discount on ARV and be cash flow positive during the holding period.

You'll want a great team in place that can - work efficiently and in a timely manner considering your loan time frame- communicates very well as you are remote and not at the place- priced well.

Go look at historical numbers for any 10 year period and see what that looks like in terms of appreciation and rent increases and I'd be extremely happy with those numbers even if I was paying retail. 

This profitable transaction showcased our efficient investment strategy and the strength of our partnership with Seth Choate.

This profitable transaction showcased our efficient investment strategy and the strength of our partnership with Jamari Sprueli.

This is reflected on Schedule E, where most of us are already being as tax efficient as possible.

My favorite credit union is Navy Federal, because they offer a long draw period.