This gets you in the game with minimal upfront costs.Covering the Smaller Costs (Inspections, Appraisals, Earnest Money, etc.)Even when using other people’s money, you’ll need some cash for earnest money deposits, inspections, and carrying costs.

We are considering building and holding townhomes but need to determine the costs.  

It's probably best to have them pay out of pocket for a smaller cost like this.

Another throws around the made up terms like “snowball” and “infinite” as if they have some magical power to rewrite the rules of finance.  

That will increase your material costs for the job and is the contractor paying for the material in their bid or are you paying for it and paying them a labor cost.

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

The CF is only playing catchup to the cost to you of the property. 

Although I know most sec 8 landlords use it because of the perception of guaranteed rents.As a small home builder I really dont know how they are going to lower the cost of new construction housing unless the govmit subsidizes it somehow.. basically the price of home components are very sticky they only go up. with the xception of lumber that will go  up and down through out the year..

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

This can be very expensive and is usually the worst choice because you can't justify the cost.2.