@Robert Kirkley  Commercial loan where they have the flexibility to lend on properties that need extensive rehab (no kitchens, heating system, etc). 

An individual qualifies as a real estate professional for the tax year if -a. more than 50% of the personal services performed by the taxpayer in all trades or businesses during the tax year are performed in real property trades or businesses in which the taxpayer materially participates; The rental or any other activity that you do not materially participate cannot be counted. andb. the taxpayer performs more than 750 hours of service during the tax year in real property trades or businesses in which the taxpayer materially participates., the rental or any other activity that you do not materially participate cannot be counted.

Everyone in our area takes the 1st option and puts in a little sweat equity for themselves and i still get a performing note with a 100% + ROI.

Vacant units and turnover will kill your investments and whatever I have to do to keep a home tenanted and performing is of the utmost importance.

If you're buying at the $15k-$20k range now, IMO it's the garbage nobody really wants and won't perform well for you.

If you have the credit score, income documents and the right DTI, I don't think you will get a better rate anywhere else.Just protect yourself and put an extension on the contract.

In a few years we would extensively remodel or tear down/rebuild.

I'd like to hear more about what type of property and how extensive a remodel you are planning on doing on each property.

Education, I have purchased some great apartment & syndication books by performing google search rankings & reading Amazon book reviews.

We have a lien on both the property and the MUD receivables, There is a 3 month extension period with a buy back penalty of 1% per month and an equity kicker for us in the development LLC.