Now the cap rate becomes 7.17%, cash flow = $310/mo w/o mgt co. involved, and cash on cash is 9.28%. (25% down pay + $4,000 closing + $1,400 upfront cost, total upfront cash = $40,400).

Remember Real Estate agents typically have an exclusive agreement to buy or sell and will get paid if a transaction gets done independent of who other parties involved are, while lenders only get the origination fees if the transaction is done with that lender.As a “Colorado Hard Money“ lender for non-owner occupied investment properties, we feel it is fair to charge a small fee to cover expenses related to estimating the value of the property, estimating the repairs, inspecting the property, and credit and background checks.

First, NO flip is eligible for 1031 treatment nor is any property that was purchased with the intent to resell within the short-term(365 or less).Any property that you rehab with the intention of selling is considered being involved in dealing.If the property is held and you do no work to it or rent it and hold it for a year, that would be considered a investment, as you were holding it for appreciation.

It could simply be that one of the short sale buyers had enough lead time to get the money together.On the other hand, it's annoying to think that someone gets to the front of the line by being dishonest, and every body involved looks the other way.

What's involved in trying to get that amended down to 3-4?

I know I am blessed and I should be thankful for what I have....I am, but, I will NEVER be excited about the gov. using my above said money to be involved in private enterprise.

Short sales do not have this OO restriction.Look for properties that are real run down.The short sale department and foreclosure department have different objectives.Yes there are a bunch of issues with short sales.Any strategy you implement has work involved to make money.Anyone telling otherwise is not telling the truth.Competition exists in anything worth pursuing in life.Accept it and work to be better than anyone else.

If not, is there a lender involved?

It is definitely a process, involving a very thorough cleaning of all affected surfaces to get as much of the odor out as possible.

I am an entrepreneur who has been involved in the home remodeling business since 2007; and would like to make a change to become a real estate developer.