The substitute of collateral was more of a scenario where you sold for $155K, and instead of paying off the $88K loan in your scenario, those funds stayed at the title company and were used on a cash purchase happening nearby in date. 

I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.7.

How keep it legal of course but more importantly how to do if effectively.

They helped us get the best coverage.  

I’m considering amulti-family property in the 76104 zip code of Fort Worth, TX, and I’d love your feedback to help determine if this is a good deal.Property DetailsAsking Price: $169,999 (seller says it’s negotiable).Current Rental Income: $2,400/month (duplex is vacant).Configuration: Combination of duplex and triplex units.Some units are rented at below-market rates.The duplex and need rehab.Historical Income: Seller claims it previously brought in $5,000/month when fully occupied.ConditionBuilt in 1934, so it’s an older property.Some permits were recently pulled (e.g., plumbing, window replacements, and sheetrock repairs), but it still needs work to get the vacant units ready to rent.It’s located in a neighborhood with a higher crime rate but also near major highways and areas with rental demand (e.g., downtown Fort Worth and Texas Christian University).My Goal:I’m focused on cash flow, and this property seems like it could work if I can stabilize it.

This was helpful. 

This is more or less like BRRR where I can refinance after renting them out for as much as the cost to build.

Let us know if there's any way we can help you in your investing journey! 

Here is a comprehensive guide to help out-of-town parents navigate the process effectively.1.

It's always a little more challenging investing in out of state (I invested out of state for 15+ years) but you can still be successful doing it.