Knowing this, we tailored our operating agreement to include rules to work within this structure.The dissolution should be clear and understood by all partners and defined in the operating agreement.

When I was doing re-habs I'd always have a fsbo sign out front with "will co-operate with agent".

At least they weren't operating a "grow house".

Without an understanding of how the collateral will operate it becomes hard to evaluate the collateral and loan itself.

I feel your pain, I ran a conventional REIA but was kind of sick of the whole sales thing myself, even though that's how we made our operating budget.It takes a lot of work to find a venue willing to give you free space, that is located appropriately, and that is large enough.

This will give you a rough idea of what the Net Operating Income (NOI) should be for the property.

(The seller did tell me that they ran the new sewer line underneath the house.)

I am owner-operator but lack specific experience in mortgage writing.

Using the 50% rule, your net operating income (NOI) for the year will be 43980/2 = $21990.

Price: $75,000Equity/Down payment: $20,000LTV: 73.33%Monthly Rent Income: $1,150Yearly Gross Operating Income (accounting for vacancy loss): $13,000Taxes and Insurance (yearly): $1,500Yearly Condo Fees: $3,600Misc Yearly Maintenance: $600Yearly NOI: $7,300Yearly Debt Service: $4,500---YEARLY BEFORE TAX CASH FLOW: $2,500CAP RATE: 9.73%ANNUALIZED CASH-ON-CASH RETURN: 12.5%What do you think?