Probably a slight loss after the second set of closing costs, and that's with the gamble that interest rates don't rise.Option 35.5% for commercial loan 65% LTV for cash out. $357.5k5 year balloon, 25 year amortization10% line of credit at prime +1One plus here, I won’t be paying interest on money I’m not using.A big concern is timing.

Unless you just really like gambling or have money to burn, in which case, by all means - roll the dice if that's your thing.Further - contractors and suppliers are SO damn busy these days with all of the construction going on around here that getting a renovation of any real scale completed correctly or a new construction job done is a very serious challenge in and of itself and takes a great degree of skill, care, TIME, connections, and probably some luck.

Would you really want to gamble on continued appreciation, instead of cashing out?

:sigh:Never been too found of these kinds of deals as there's just too little control for me to gamble my hard earned money.

... and since you enjoy gambling, be sure to sit at the high-stakes tables on your next trip to Vegas or Reno.

Sounds like the area is rent growth and an appreciation type play.The seller is likely looking for a buyer willing to gamble or a foreign investor that doesn't mind hardly any cash flow just to get funds into the states here.

He's taking a huge gamble with me and only has the resources to survive around 6 months.My plan is to do everything I absolutely can do right now, and then move down about 2 months before my partner is ready to move down.

However after speaking with a few succesful investors and 2 very cool succesful lenders everyone has advised me to not gamble with my money at first and invest in a rental primarily a MFU using a fha loan.  

Check out "The Retirement Gamble" video that aired on PBS a few years ago, it may still be on Youtube.

Yet, I'm willing to gamble on the fact that more often than not, they're the same ones who are unhappy about their experience.