I am using my 120k to invest out of state.

Instead of picturing yourself being amused poring over my application you should picture yourself getting suckered by a person who has lost their main source of income but who still has a high credit score because they have managed to continue servicing their debt.

Due to the requirements of the retirement fund I am using to purchase it, I can only purchase property using cash (cannot take out a loan), and have to hold it for at least two years so as not to be identified as "carrying on a business".

I only plan to rent the lots, which I would assume is similar to SFHs, which I am used to.

I am using a conventional LPMI (Lender Paid Mortgage Insurance) mortgage for this property.  

It is an 18-plex in a town 15K people with a very high rent to owner occupied ratio (renter being on the high side).Property is on MLS listed at $749,000Deal Summary:18 units x $500 per unit = 9,000 gross monthly/108,000 yearlyVacancy factor I am using is = 5%Total Operating Income = 8,550 GM/ 102,600 yearlyTotal Operating Expenses = 4,412 monthly/52,950 yearlyAs a percentage of Income 51%NOI = 4,137 monthly / 49,650 yearlyIn my analysis to calculate what I should be paying I am taking the NOI / my expected CAP RATE, which in this case would be 49,650/.10 = $496,500In this back of the envelop math I view my max offer price (on the assumption that I have good data on both the rents and expenses side) as $496,500 to achieve a 10% CapRate.I would really appreciate feedback as to if I am on the right track or I have totally missed something here.ThanksRob

I personally am using a bank which if I roll my commercial ballon loan into a 5/2 ARM with a 20 yr Am, they'll let me cash out as soon as the property is ready to roll into the loan.

Michael Petruziello I do know one that I am using right now on my 4 plex.

I am using part of the HELOC as the down payment on a traditional loan from my loan guy that got me my current home.

Don't have any stories to add, but following for my own amusement:).