I live in Auburn Alabama and the market here is pretty crazy so I have been looking at surrounding cities like Montgomery and Birmingham that are bigger and more affordable.I know that the typical down payment someone’s needs for commercial is 25% so short of me getting seller financing, or a partner, or some other creative finance path my purchase power leads me towards properties that are typically in lower income areas- at least for the ones I’ve spotted. (200K ish) I’ve listened to pretty much every podcast multiple times and often hear people saying that when they begin they focus more on cash flow and as they grow they look more towards appreciation opportunities.

@Patrick Philip Well, the other three being in a historic district does make a difference...the People who like historic district properties generally pay more than for a comparable house not in a historic district, and historic property renovations generally cost more due the restrictions.This is a case where 1/2 mile away are Not comps...many times just a block or two across a major road/subdivision boundary are not comparable.Also, the more sf you have in comparison to comps, the lower the $/sf value you have.....a 1900sf 3/2 in the same neighborhood won’t have the same $/sf. as a 1500 sf 3/2.

Here is a breakdown of what it looks like when a borrower chooses lower points or a lower note rate.As a disclaimer, this blog post is meant to show borrowers the options they have and not direct them in a certain way.

That's worth having a high-quality tenant and it should be worth it to them to avoid moving, paying more, or potentially winding up with a nasty Landlord.If there's even a chance they would cry over an increase, be prepared to show them comparables, the value of staying with you, and how much you are losing by keeping them at the lower rate.

I rented the lower unit and it paid my mortgage.

Some people will even wait at contract acceptance to force you accepting even lower offer.  

And there aren't any turnkey providers I know of that accept offers lower than their advertised prices.

Then you should have no problem at all getting an FHA with a lower down payment.

The downside is that the nature of project competition means you can get lower quality work and find a disconnect with those you work with since they are looking for more short-term work. 

From a lender's perspective (especially a note investor), a sub2 transaction lowers the value of your note because it is a defect.