Let's use that as an example. 20% down is $43,000 plus lender loan origination fees, closing costs etc is going to push you over $50,000 cash out of pocket.

And it is Cash-Flowing as I speak.

Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

However, most of these properties still cash flow well (or enough to cover PITI). 

Cash flow has been hampered by an increase in cost of ownership recently, specifically insurance. 

Most reverse exchanges are done with cash from the client or a private loan of some sort from an individual or a portfolio bank.When your old property sells you will have that cash in your account to purchase the new property. 

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.

- My first thought is offering cash, but the home owner would most likely just let it go to foreclosure because of how low the offer would be. - My second thought is offering some cash and taking over the loan - there are no liens on the property yet.

Can you pull the cash off the business credit card?

If you own (2) properties free and clear you could simply do a cash out refinance.