Montgomery County, Northern Virginia, DC proper, and PG county all have some great areas to live.

STandard promissory note .. do you have a mortgage or deed of trust to go with it to secure your interest.this is called gap funding and the rates are quite a bit higher than what they are offering.also if this deal does not go well do you personally have the money to pay off the loan take the house and finish it or sell it or if the first went bad would you get wiped out because you do not have the money to pay off the first.Personal guarantee's are worthless.. in 99% of cases  if it comes down to you having to sue on the PG means your going to spend big money with attorneys to do this and the debtor 9 times out of 10 simply files BK.so that's the other side of the coin.. the rest is how much U trust them and how much money you have to protect yourself. 

@Guy Olds well I'm kind of a go after it kinda guy lol.... i heard slot of good about yellow letters but just wondering what people are doing here in socal... your a wholesaler right ??

I have seen presentations from not-new sponsors where a return metric listed on pg 2 of their material is higher than what you get when you do the math with their own pro forma in the same material.I remember one case where the headline summary had a yr 1 CoC of like 12%.

Some may ask why only $125k ARV, I'm pretty knew at this so I'm simply going off of what my realtor is telling me based on his knowledge of the market.)Plan would be to refi cash out and rent, clearing $240 monthly cash flow and approx $18k cash in hand.Here's the problem, the builder went bankrupt 3 years ago after building only 2 of the 16 slotted buildings.  

If your father in law was the one doing the refi, he wouldn't have any issues getting it done; some lenders would not require him to proof income either.After doing the refi, I don't know if it's possible to deed the property to the LLC unless the LLC can proof income along with your income as the PG on the new loan when you refi.

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The higher the ratio, such as 2% properties in southern PG county, or 3 or 4% properties in Baltimore are indicative of high risk properties.

My parents bought our house in PG the early 90's for $60k...just a tad higher than that now ;).  

DEFINITELY not ready for anything larger than 4 units yet.I assumed commercial since there are several posts about using up ‘slots’ for personal mortgages- of which there are 7-10 apparently (?)