To make a deal like this work, you're going to need a lot of cash - including cash reserves above and beyond the loan.You're far more likely to get financing on a commercial loan if the rents will support the payments.

The new requirements are:The buyer is prohibited from selling the property for any sales price for a period of 30 days from the date of the deed.After a 30 day period, and until 90 days from the date of the deed the buyer is further prohibited from selling the property for a sales price greater than 120% of the short sale price.The above restrictions will run with the land and are not personal to the grantee.Can anyone confirm this and/or possibly have a link to a reputable source?

It comes right off of the freddiemac and fanniemae websites I think it page 5 of freddies, fannies , i just use this handout attached belowhttp://www.freddiemac.com/singlefamily/service/docs/Short_Sale_Fact_Sheet_Pub_908.pdfhttp://www.realtor.org/sites/default/files/handouts-and-brochures/2009/fannie-mae-confirms-short-sales-commissions-policy-2009-02.pdfMaybe the term i used, illegal, was not the correct choice.

Make sure you have cash reserves because IF the unexpected arrives, you will need cash to take care of it.

Go to each door and confirm all sinks, showers are off.

So to confirm, you're saying the DTI formula will look something like this, right?

I just don't have any cash reserves.

Different properties and finance and structure terms.Secondly even if you got a seller to give a second with no money down you still have for 5 - 12 units about 8k to 10k in closing costs with phase 1, cost reserve stable, appraisal, site inspection, survey, etc.Lenders typically want 75% LTV which even if a seller holds a 15% second you still have 10% needed.

Like, total criminal running the thing, bad finances, no reserve fund yet, dues kept artificially low, etc.

You pretty much confirmed what I already knew would probably be the answers, but I still thought I would seek opinions, so thanks for taking the time to answer!