This is specific to the electrical drawings, but feel free to propose your own solutions to the problem.

After a year, I would be in a much better position to finance the property and purchase it from the seller while keeping my tenants in place.I would initially propose the same 16K sale price, 350-400/mo rent (considering the necessary repairs I will need to make) and 100% of rents going towards the sale price.

The proposed US interagency guidance proposes larger banks need to hold high quality, (super) liquid assets for a prescribed amount of runoff (overly prescribed/inflexible if you ask me) - rather than relying on off-balance sheet funding sources and a balance sheet full of less liquid investments/assets (they more or less want treasuries or cash to fulfill a low/moderate runoff, with haircuts/limits on Agency MBS) The caveat is that the runoff is what you would see in a low/medium liquidity stress scenario, so they can still project to lean on borrowings in high stress.

Which was the previous owner's unit, so it makes sense.He could rewire for just a couple of hundred bucks.The 3rd floor tenant (friend/family) have no problem having it rewired to their box, but that only lasts until they move, and then I have to deal with it all over again.I suppose a slight rent reduction to account for the 2 lights is not uncalled for.CFL's, so I think 10 bucks is more than reasonable.I just don't have the cash to add an owner's panel.In the meantime, I can propose it, and write it into the lease.

@Joe GoreAgreed, but is that not the case with most substantive pieces of legislation?

Joe Gore How do you propose a tenant vet their prospective landlord?

If the proposed loan won't debt cover to the lender's satisfaction then more equity is required which will reduce the cash on cash return, all else being equal.

Since I have no desire to acquire these properties just to collect the interest on the certificates I asked the broker why he would propose certificates that have gone beyond the redemption period.

It's clear in this legislation, DF only applies to loans to owner occupants.

They don't know what they don't know and so far, I've never seen or heard of any who propose any "creative financing" scheme that had any in depth finance background or knowledge.