Also, the more origination charges you pay the lower your interest reate is (for the most part).DM me directly if you want further explanation.

Thank You for the detailed explanations, you bring up a good point i forgot to ask.

I respect you greatly for not just "washing your hands of it" and then not really learning the reasoning behind each side and learning any lessons going forward; and instead you asked for further explanation.

I have never been east of the Mississippi River so I cannot give you any geographical opinions.Good luck to you!

I know that there is a lot in play, Market, Project, Inflation, Leverage conditions, etc, but the exercise is mente to get and idea of the mindset and see if we can come out with some trends nationally and internationally.So let me go first:MAIN GEOGRAPHIC AREA OF INVESTMENT: Central Mexico (yea Mexico)MAIN TYPE OF REAL ESTATE INVESTMENT: Single house / Rental and Apartamento BuildingsMINIMUM EXPECTED RETURN (ROI): 12%INFLATION RATE  (CPI): 4.5%There you go, lest see what we can find out of this.

Here is a formal explanation. 

Thank you so very much Joel for a very detailed explanation, I really appreciate your time and for sharing your knowledge and expertise on this matter.

You can also choose to include the costs in the basis of the property purchased.This can also be the case when moving into a new asset class, like SFR to Commercial Property, even if it's in the same geographic area.If you move quickly - ie, travel to an area and put in an offer and close on a property in quick succession, you can make a case for deducting as an expense right away, but there are several grey areas involved in this.So keep track of all your expenses.  

From Google searching it looks like this means that this mortgage is in the second position to the primary mortgage, essentially making it a lien on the home which I would have to pay to make the property actually free and clear, were I to be the high bidder auction.Can anyone confirm this or give a better explanation of the ramifications of a subordinate mortgage if I'm incorrect?

and potential monthly rental values for properties in a specific geographic area.