It’s all about securing the right agreements and understanding the rules. 

Doing so will seperate your investments from your personal assets and protect you from liability. also, one thing you may not know is that you cannot get a conventional loan with an LLC.

I borrowed $30k on a personal loan from Discover for 15% with no fees for a plot of land and paid "cash" for it.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

The terms for a 2nd position loan on a rental is 6%, 25 year term,  and 2 points origination fee.  

@Jon Ankenbauer you won't be able to keep the land separate from any future construction loan.

@David Matarazzo  Did either of you move forward with them for property loans?

Similar to what Patrick stated - most have ITINs and have seen a lot of loans like that and those are sold many times on secondary market. if not I know people who still originate I would say they are tougher to sell on secondary market but there are still buyersRe: jay comment - price of notes has doubled over past five years on many loans - especially defaulted or loans with some hair too them. 

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

The loan would be $1M+.