Consult with a local mortgage banker for underwriting guidelines for your situation ( ie, landlord experience, reserves, debt to income).Start to develop relationships with local bankers as well, who may be more flexible.

At this point in time I, I have the extra income to likely buy 1 new investment property each year but that could change to about 2 per year once student loans and personal mortgage are paid off, I'm making VERY VERY aggressive payments on both because I'd rather not worry about the payments and I'd like to have the extra disposable income to make more money with (I know that I could use the money for investing but I am not a fan of personal debt, so this is the decision I made).

Debt expense is roughly $2400 / month Annual Tax: $10,500 Insurance: $3,500 Heating expense (Nat Gas): roughly $4850 / year (One boiler for entire building & two water heaters) Estimate expenses at 5% of Gross Income Annual Rent Roll: 70k ACQUISITION COSTS: Lawyer: 1k Appraisal & Environmental: $2300 Tank Sweep, LLC Set up, Survey, Misc: $1500 Title Fees & Bank Attorney: $5K Bank Origination Fee, Gov Record Fees: $3k The property did come with one unit vacant which I filled this month.

He is saying he is buying an option to buy the debt at a discount for $1 SHOULD the property sell OR should you be able to get a hold of the debtor.

Remember that the stated NOI is before debt service so that could kill your cash flow paying a high debt service.

More importantly, our debt/income ratio would probably be too high to qualify for a standard loan.

You have long term low debt locked in which is good.The condo part and rent amount value isn't good.

It just eliminates a second set of signatures needed to open escrow.

This will make your loan go a lot faster and eliminate a lot of the "surprise" document requirements ;)

I will do my best to explain this scenario related to the purchase, rehab, and refinance of a property I am pursuing.Purchasers A, B, and C are partnering to purchase and rehab a duplex (purchase price and rehab not to exceed $90,000 with e rehabilitation loan)Application breezed past initial underwriting as all partners have above 750 credit, stable income, low debt to income, etc.