The problem with a HML is that the locals require a 10% down payment to secure the loan, as well as proof of good enough income.

The quotes have came in from $1500-$4500 to build, including the pad for the units to be built on.If I charge $25/month for each unit and go with a middle priced bid of $3000, that is an extra $900 a year for $3000 investment. 30% return is good enough for me.

Buy the house at a good enough bargain with either cash or lines of credit.

Mortgage - Do you need the income from the rentals to have a good enough DTI?

Is it better to buy land and build on that land or is REO and Short Sale good enough deals for now in this buyers market to invest in?

Of course, you could always try to wholesale the deal if it is good enough and you can't figure out the funding for yourself.

If the deal isn't good enough for you to be willing to put your assets on the line for, perhaps you shouldn't do it.

I'm not opposed to even the $10k down if it's a nice property and I'm getting good enough pricing on it I feel comfortable that I'd get that $10k back and more if I just complete construction.

No difference between replacing flooring from 1972 that look awful and replacing flooring from 2005 that just isn’t good enough, it’s still just $/ sq ft.

But I'll just add that to my "evaluation" - can I find a deal good enough to compensate for a slower recovery and potentially greater risk?