If you keep buying the rental properties RIGHT then you will have excess equity in each one and can possibly do it all over again with the equity in your new rental property.

It may be as simple as poor grading around the foundation.More likely, there is static pressure against the foundation from excess moisture in the ground.

As your fund grows, at some point do you make a determination that you have enough set aside to cover any foreseeble expenses, and take the excess off of the top as income for yourself or to reinvest in other properties?

The program, which ends tomorrow, will have transferred $1.25 trillion of MBS "on behalf" of the US taxpayer, representing the single biggest asset on the Fed's balance sheet, and backing up such liabilities as currency in circulation (yes, that dollar in your pocket is collateralized more than half by rapidly devaluing, and in many cases cash flow non-producing houses) and excess reserves.David H.

Jon,My major gripe here is simply that we the people are putting up in excess of 8 Billion of our $$$ for an 8% ownership and 1 board member.

That does include taxes, insurance, maintenance (which is usually caused by the tenants so being newly rehabbed doesn't help), vacancies, any damage in excess of security deposits, make ready costs, utilities at least when its vacant, legal fees, eviction costs, book keeping, etc.

So long as you place at least 20% down, there is no PMI.In some cases, with some lenders, they may offer loans in excess of 80% LTV with no PMI.For non-owner occupied loans right now, you will need to place a minimum of 25% down so PMI is not a factor due to the lower LTV.

How about management, vacancies (not technically an operating expense), damage done by tenants (in excess of the security deposit), entity maintenance, capital expenses, advertising, lawsuits, legal fees, etc, etc, etc (I could go on and on).

Did you offer to help him out and take some of his excess leads?

7500 seems excessive and I don't think I would have felt comfortable with it.