That's why I'm trying to figure out how one gets into the market without having a ton of cash floating around. 

They have been floating along the river enjoying the views and pretending the crocodiles aren't circling the boat!

Luckily it was floating back up, but with a new government in place, no one knows anything.

The other issue is that there is a layer of old rotting wood planks under the subfloor and floating laminate floor.

@Matt SmithHey Matt, be aware that the Tax Bill currently being floated in Washington is trying to do away with the 2 year requirement and make it 5 of 8 years instead of 2 of 5 years to qualify for the tax exemption.

I think you fell for the "real estate never goes down" and "a home is your biggest investment" BS that's floated around by groups with a vested interest in doing RE transactions.

If you need to use an in-house loan, try to get an ARM that will remain in effect for 30 years.A standard 5/1 ARM at a small bank would be fixed for 5 years at around 6.50%, then begin floating with annual resets at 1yr Tsy+3.50% for the remaining 25 years, would be limited to a 2% rate change each year, and 6% over the life.

I just got a 3yr ARM, 5.25% for 3 years, then floats at 1yr CMT+3.25%, 30year term/amort, lifetime rate maximum of 11.25%, fees around $1k).

I have about a million other questions floating around my head, but this will help me at least focus on my next step.

The problem is this loan floats and will be for only 5 years.