At least in my area, it's cheaper to own a condo with the HOA dues than it is to pay for all the utilities, snow removal, waste management, maintenance, etc, that goes along with an SFR.

So if the LP's have enough cash they simply pay the loan off and own it free and clear.. but the size of the deals are so large raising cash to pay off debt simply is not realistic at all so if the property goes into default your junior position investors find themselves wiped out.Further more thats why a debt fund like Chris has can be a good choice for the very conservative investor..

The only way they will pay 100% is if the tenant does not work. 

You’ve found the property you like, and the numbers seem to work, but it’s more than you can afford or want to pay.

If they’re selling for a $400k+ gain they could look at a 1031 for:A super nice 2-4 unit they wouldn’t mind living in a unit of where the rental portion exceeds their 1031 sale. 

But keep in mind, the top of their list is going to be people that they’ve worked with in the past and probably closed deals with.

Paying off the note is what helps.. in my mind and how I did my sub tos  I would never buy just because of low downpayment or interest rate.. there HAD to be big equity upside DAY ONE.. other wise its just a PITA

After spending the past two years learning the ins and outs of underwriting and analyzing deals, I’m ready to take the next step and acquire my first multifamily property (20+ units).I’m looking to connect with like-minded investors who are interested in partnering on this journey.

Then I pay those loans off asap and repeat.

This is on my mind for maybe a 5 year plan.Mike