Settlement costs are part of any deal, belly up and pay it, buyer, seller or finance it, but it needs to be paid.

READ BLOG HERE The area (44108) that this apartment building was in got a big fat F on my Blog.

The bank initially pre-qualified them for the loan but then, when it went to underwriting, it was a big fat no because of the no history. 

A good rental reference or two would put my mind to ease, that and of course a fat security deposit.

Regulators will scream if a bank finances a past problem property without a heck of a good reason to do so.Be it a SFD or especially a multi or commercial property, there is a reason the borrower went belly up, that often has issues with trails leading back to the property.

Originally posted by @Nicolas Beaujean:@Jay HinrichsLOL, two hours ago I didn't like you-now I do hang around BP long enough and you too will be offered a 20mil loan at 3% and you dont even have to make payments.Just have to send 25k to buy an insurance policy that the lender will be repaid  :)  you Render Fat  not loans !!!

Phillip Gonzales I know nothing about you other than what you have divulged in your message here but to me this is the same no-win situation as when a woman asks "does this make me look fat?"  

When I'm "fat" (good cashflow) I'm inclined to look at acquiring High Appreciation/Low Cashflow properties.When I need cashflow I tend to look for Lower Appreciating/Positive Cashflow Real Estate.Then there's my decision to:Buy, Fix-up, Sell?

I've done several rehabs and would not EVEN attempt to do one remotely unless I had people lined up that I knew I could trust intimately.In this situation, I would absolutely not mortgage my residence to fund this deal unless I was certainly I could pay the loan even if this deal goes belly up.Now that you're in this far, the number one thing to do is to get to Cleveland and Toledo and see what the real situation is on the ground and to meet some people.

The entire complex was renovated in 2007 and long story short the developer ended up going belly up.