I don't quite understand that but I think it illustrates how you don't get a defined ROI even in expensive properties.

For the record WF was the 3rd or 4th bank I had a sit down discussion with and they were the first willing to do the loan.2) I'll explain how we structured the change over from OO to the first tenant for our current move as an illustration of the process we've had success with.  

After reading "The Millionaire Real Estate Investor" the author was illustrating how the longer you have your property, the lower your % Return on Equity ((annual price appreciation + annual debt pay down + annual cash flow) / total equity in the property).

Hi George,and It looks like Party #2 in your illustration is a wholesaler investor and party # 3 is another investor who has agreed to buy the property from Party/Investor#2.

I simply showed him a 2 HUD statements side by side.  1 with cash and 1 financed to illustrate that he does not lose any money by me financing the deal. 

Correct ... perhaps an illustrative example would help: Let's say you bought a house for $100,000 cash, and let's say that you happened to time the market very well (probably luck) and in one year the house went up in value to $110,000.

Again this one is licked with off the shelf software for another application entirely, with a different purpose and for a different industry, but with the same needs mathematically and analytically.I have the algorithm already but integrating these other software programs is the technical KLUSTER FUCHEN we will face.Mr Investor is making my point with his comment about "if I can find another source.." which illustrates what I said above about if it works people will use it and if the results are backed up by hard data the industries (real estate, appraisal, lending etc ) will follow suit eventually when the market tells them "you guys are wrong and we ain't doing this deal on your terms."

I agree we want the property at a good price, but I feel providing optional offers could illustrate our efforts in wanting to work with the seller as a fair buyer.The issue I'm having is figuring out creative financing options to appeal to the seller (particularly subj to, seller financing).

Although mortgage payments should not be included for Net Operating Income (NOI) purposes, I've put it in here for illustrative purposes.

Here's a question to illustrate how new I am to this: If I put 20% down on the second house the loan for the second house wouldn't have to be an FHA loan right?