This leads me to believe that they will be harder to work with on short sales, and my personal experience confirms this.

His basis was, there was a 300% coverage for loan loss reserves.

It works so well, that is where I park capital expense reserve funds for all of the rentals.

Oh and they also earn interest on the cash they keep as reserves. 10 points extra credit to anybody who can spot something wrong with this 'solution' to the crisis.

Almost zero interest and get paid interest on your reserves.....http://www.federalreserve.gov/newsevents/press/monetary/20081006a.htm Interest on ReservesThe Financial Services Regulatory Relief Act of 2006 originally authorized the Federal Reserve to begin paying interest on balances held by or on behalf of depository institutions beginning October 1, 2011.

Gross rents are 1275 a month, (I have seen the current lease to confirm).

I have been a contractor for alot of years and have always been interested in real estate, so finding decent deals and fixing them up isn't a huge problem.Still working on exit strategies, talked a good bit with a local portfolio lender and looks like I will be able to get permanant financing after the rehab with them.Going to work with a hml and do most of the work myself, while expensive this should allow me to increase my reserves slightly during the project and then refi with no cash out, hopefully straight into the next project.

Interest will vary but will run from 7% to 8% most likely for a fixed rate.They will require the following info:Balance Sheet2 Years Tax ReturnsRent RollProperty Info - what it will appraise for, the loan amount your asking for etc.To qualify you need a credit score above 620, debt service coverage on you properties 1.2 or above, enough cash reserves for the number of properties you have.Appraisal and attorney fees are paid for out of the closing usually.

Do you have money for a down payment and reserves?

You have basically confirmed what I believed to be true as well.