Leverage and invest at 40x $100 000 properties ($20k down + $5k closing cost, 30 yeas fix rate loan) with a return of 10% where you have better asset protection (my keeping lower equity and higher bank position), you are hedge against inflation (agree with me, in 30 years $1 000 000 purchasing power will be less compare than $1 000 000 today) Here is how looks mathematically:1. 10% on $1 000 000 (10x $100 000) = $100 000 / annually - No interest tax deduction- No loan paydown benefit2. 10% on 1 000 000 (40x $100 000) = $400 000 / annually - debt service + full tax benefits+ loan pay down+ hedge against inflation for 30 years+ better asset protection (by maintaining lower equity  position)   + (not guaranteed of course) if appreciation happens, it happens on the all full asset amount, example:If appreciate 10%:In case "1" you will have 10% on $1 000 000 = $1 100 000In case "2" you will have 10% on all 40x properties (40x $100 000 = 4 000 000) = $1 400 000As far as cash flow, as long you buy "right" CAP 8% and higher you will have stronger cash flow on leveraged asset + all additional benefits.Great explanation.

The explanation of why you love 4 plexes makes complete sense! 

If it's not a gift, more documentation and explanation will be needed (are they also owners, is there a loan, etc). 

Alba v Jean-claude Kaufmann :: 2006 :: New York Appellate Division, Third Department Decisions :: New York Case Law :: New York Law :: US Law :: Justia This decision gives an excellent explanation of when specific performance might be denied.EMF Gen.

." - I don't owe you or a self proclaimed "*****" any explanation.

That's why the personal connection with the verbal deal and personal reputation on the line matters for me in classifying as a PML situation.That is a very clear explanation of the difference between HML and PML.

@Eric Winkler Thank you for your post and an explanation for some of what has been going on. 

However, if you demonstrate that you're abusing FHA loans, such as getting a new loan after six months because you converted the property you just bought into a rental without a reasonable explanation, then you could have issues. 

This is a complex question, that requires answers with exceptions, caveats, and explanations, but here are rough examples:A.

Quote from @Anthony Dupre: @Chris Seveney @Stuart UdisThank you so much for the clarity and clear explanation—it makes perfect sense.I’d appreciate your help in understanding business structures now.