You are literally loaning your hard earned money to someone else who will also get a loan on top of your money to acquire some property for a fantasy proforma based on too many moving parts where no one is safe. 

A relative who does long-distance real estate investing told me that I have to sign the final loan document and the transfer of ownership document in person.

Bridge Loans or Mezzanine FinancingShort-term financing can cover the down payment:✅ Private lenders: High-interest, but great for acquisitions✅ Mezzanine loans: Secondary financing sitting behind a primary loan✅ Cross-collateralization: Leverage equity in your existing motel or rentals4.

These guys did this for over 20 years .. it was determined that they actually made less than 12 loans in the whole time bringing in Millions of dollars 10k at a time to small of an amount to sue over..

Loan interest is deductible based on it's use-not the asset securing it. 

The  portfolio stuff does not so they make the rules up as they go along, but those loans comprise less than 10% of all loans.

House hacking with an FHA loan (3.5% down) could be a smart way to start while minimizing living expenses.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Neighborhoods in areas like Homewood and Hoover have been experiencing strong appreciation, and the rental market continues to be strong, especially with the growing number of young professionals and college students in the area.As a loan officer, I’m here to help you navigate the financing process, whether you’re looking for your first investment property or expanding your portfolio.

Assuming:- $300,000 gross scheduled income- 30% operating expense ratio (resulting in $210,000 NOI)- $1,385,000 loan at a 6.7% interest rateMy calculations indicate a first-year levered cash flow of $99,560, yielding a 13.94% cash-on-cash return.