Hello,I recently closed on a BFD deal and looking for direction on correctly setting up journal entries, to make it easy at tax time.In a nutshell...We hold a mortgage on the property with a principal of $150k, 4.25%, 30yr amort (liability)The BFD sale price was $300k, with a $45 downpayment, $255k financed at 5.5%, 25yr amort, 3yr balloon (asset).All transactions are run through an escrow agent, and we just collect the net difference monthly (~$325 or so).   

It was the concept I mentioned that I just had to learn about.  

JD yes I realize you didn’t invent the concept of equity harvesting.

This post was mostly for residential lending...but many of the same concepts will work.  

I mean what novel concept.

This is an interesting concept! 

deal flow  getting deals good enough leave enough forced equity to get your cash back at refi pretty simple concept.2. cracker jack rehab crews that can get these turn overs done in time and on budget.3.

My agent helped a lot when I was just a regular buyer but could hardly grasp the concepts or details/numbers in investing.

I am a Real Estate Agent and investor in PA and this concept has me intrigued.

A lot of brokers are not even aware of what rental arbitrage is so maybe your broker understood a completely different concept.