After much reading, "observing" and researching the current inventory of possible rental properties I ended up writing a contract on a leapfrog house last week and the financing is pending as I write.

Learn the inventory in you immediate vicinity.

Sure the Median price is up 13% and inventory may be at an all time high.

Your borrowers personal income will not qualify for a loan on this type of property but the cash flow, strength, and history of the property will.Who would you rather work with a Bank or a non-conventional Commercial Lender?

Most conventional lenders have no seasoning requirements any longer.

We provide conventional mortgages, bad credit mortgages, VA and FHA loans, refinancing, second mortgages, home equity loans many morehttp://www.flmortgagedepo.com/cgi-bin/fl-form.cgi CheersNeo

The end result is that the builder is provided the incentive to build a home that costs a lot, and not a home that makes sense given the inventory of the subdivision, and which will sell quickly and make money for all parties.

Its possible that a "detailed" project analysis made from ball park figures would be enough in a business plan, but i guess that depends on how well you can write out your business plan and what they think matters.What i do know is there are other ways to get mortgages through conventional means.

Dorlyn, I’m not sure your situation, but for me it’s generally better to do a refi when I’m getting at least 1% or more in savings or if I have a hard money loan that I want to replace with a conventional mortage.

The 119k loan was recorded as a deed of trust on 12/22/04 as a conventional 5.5% adjustable loan.