@Joseph Mceneaney Your down payment is your "skin in the game".

-You always want to work with partners that have "skin" in the game. 

1.EquityIt's not a surprise that the stability in the market over the past decade since the sub-prime crisis can be linked to the elimination of NINA and NINJA loans.When investors must have a skin in the game,speculators leave the industry for the real professionals who actually know what they are doing.Speculators belong in Vegas.True professionals don't hold 90-100% of their portfolio with less than 3% equity.That's a suicide party waiting to happen.We are not a fan of this whole "creative financing" and "No money down (NMD)" movement on BP.It's cool if it helps gives some average Joe their start in real estate,but when it becomes your sole strategy,you will surely get eaten when the apocalypse arrives.We currently hold all assets in a 25% Equity position.You don't have to be the only one coming up with equity.Find partners.Skin in the game is where it's at.There's a good reason banks talk of LTV and DSCR  when you apply for loans.The new government may get rid of all that as part of the coming repeal of all those "evil" regulations.Currently,on many of our duplexes,rent from one unit alone covers the mortgage payment.We believe that to be almost recession-proof.2.Location!

I think banks would view it as a net positive since it shows skin in the game.

What is your "skin in the game"?  

Plus, Our contractor was also in a major auto accident (not his fault), attacked by a dog (requiring skin grafts to close it up), had a grandmother in ICU, and had a young daughter who required specialized medical care out of town - all during our rehab project.  

If Borrowers have no skin to put in the game - which property will they lean towards lending to?...

In the cold winters of PA the last thing you want is a tenant with control over the heat and no skin in paying the bill.  

The quicker you are able to go from close to occupied the sooner the tenants will be paying for those costs instead of you.With Hard/Private Money Financing you will have to have “skin in the game “.  

If you really want some skin in the game super early in the process, you are allowed to charge at-cost for running credit.So you do actually have THREE opportunities to collect $$$ skin in the game (2 of which are profit-neutral, granted), and you are free to freeze-frame the entire process until you get that investment from the borrower in the process:- When running credit.- When ordering an appraisal.- At closing/funding.