Unless the borrower is self employed and takes a lot of expenses to show lower income on their returns then it usually makes sense to pay a couple thousand a year in higher interest (you can pay like 4,000 a year in additional interest for DSCR if you are saving 30+k on your tax bill kind of math lol)

I would confirm this first.Otherwise, I just use Excel and develop my own pro forma from there.

Purchase price: $515,000 Cash invested: $960,000 Sale price: $1,850,000 New Construction development, What made you interested in investing in this type of deal?

They're taking massive fees 2% on assets they manage, 20% on increases in net asset value, large salaries for only $7-8m assets, they are self dealing with a $2m in promissory notes that pay Dutch's other entities 10.95% interest. i think the 36% return might be before all these fees or for his 3 other entities that lent the company money at a very high rate.source: their sec filings https://sec.report/CIK/0001721...

However, if the FHA interest rate is lower, I would still go that route and if rates drop refinance  however keep in mind FHA has PMI for life  Here you go FHA has the self sustaining requirement that requires the three non owner occupied  units to cover the entire PITI which with 3.5% or 5% down is virtually impossible with today's interest rates and price level.

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.

Moreover, I would recommend prioritizing a W2 position over 1099 self-employment/sales for two reasons.

Self employed is a costly endeavor.

They could self manage for several years, using the rental income, until the next phase of their retirement.If they have a decent amount of financial discipline, they may want to get a HELOC now before they build to get the most favorable rate.

Hi Matthew,I’ve been conducting my own research and self-learning over the past several months, trying to absorb as much as I can on my own.