One thing that I can remind you - you MUST HAVE RESERVES, and you will also have closing costs as well as pre-paid escrow items.

You will need about $2000 at the start (prepaids, closing costs, etc.), plus enough to get the rehab started.

I don't believe its possible when they use debit card or bank transfer, if the funds aren't there it would just overdraft.

However, with credit cards (or debit cards), once the transaction is captured it is going to be funded by the bank.  

They will help you track your payments, send invoices as well as will give your tenants a range of payment options - ACH, credit or debit cards.

I would break it down month by month in the construction stage based on the draws you are going to require.A6: List 17 named ‘Interest Only (est. 5 months)’ accounts for the prepaid cash to pay the interest only of the mortgage.We are estimating a 5 month construction period of which a total of $30,067 will be needed in advance.The assumption is that we will begin construction in May and complete by September.Year 1 only includes 3 months (Oct, Nov & Dec) of full mortgage payments ($96,682 annually / 12 mo. = $8,057 x 3 mo. = $24,170).We did the same calculation method to est. the year 1 (buildout year) for the taxes and expenses.

The whole concept of prepaid rent and notice for termination get a little murkier.  

You would net roughly $150,000 in cash from this transaction.You are pre-qualified for all of the scenarios I have outlined…below is a spreadsheet for you to compare options:ProgramEquity Line of Credit $90KEquity Line of Credit $130KVA RefinanceTotal owed against your home$360,000$400,000$424,000Rate4.75%5.75%3.875% FixedTermInterest only for 10 years then amortized for 15 yearsInterest only for 10 years then amortized for 15 yearsFixed for 30 yearsClosing costs and pre-paid items for closing$1000$1200$4900Net cash proceeds available after covering closing costs$89,000$128,800$149,100Monthly payment$357 + first mortgage $1802 = Total monthly payment is $2159$623 + first mortgage $1802 = Total monthly payment is $2425$2370 PITI first mortgage only Please let me know what price range of investment property you are considering and if you will need a loan on the investment property as well….and I can run figures for you.

Hi everyone,  I need your professional advice, I found a house off market that if for sale, but the owner wants to sale it  with an existing elder tenant that has prepaid two years of rent with 10 months remaining, as she already prepaid, she won't be paying rent to new owner.  

And good luck collecting money from someone who is getting free housing, food, and a debit card.