Without a significant income, I'd be a little nervous having to cover debt service (even if it was at a low interest rate) with capital I'm supposed to have as reserve or for investment.

I understand that a higher debt balance would lead to a higher effective interest rate but i do not understand how the loan term would change (unless the buyer opts for the same monthly payments before and after the capitalization of the closing costs)

From a licensing point of view you will need two licenses, the MLO and a consumer lending license for the company.The exception to that rule is if you are financing a home that you actually lived in for two years or more and it was your declared primary residence on your income tax forms.Even with the licenses go a plethora of compliance issues from Red Flag to Debt Collection practices, and everything in between.

Even though I am only working part-time, my debts are minimal and I have no need for dollars at the moment--which is why they are stored in the form of yellow metal :)Matty-I haven't considered the 28% tax...might have to manuever a bit to maximize profit...thanks!

I recently shared about my first deal consisting of a rental unit that I have 13K in cash and about 12K in consumer debt (interest rate 12-14%) invested.

property management ~ 1400 (~10%)vacancy ~ 1200 (~8% with good niche market of students)Debt service w/PMI assume 4%, 30 year fixed = 590x12 = 7080Total expenses w/ debt service = 14,330Total yearly profit = $2470CoCR@1500 = 86%CoCR@1400 = 61% (pm/va values changed to reflect rental price)CoCR@1300 = 40% CoCR@1200 = 17%I have two questions regarding this deal.1) Are my estimates for expenses ballpark for your average house of this nature2) Does this deal make sense to do in light of the fact that my investment options are somewhat restricted by my requirement for a move-in-ready-homestead?

In this case, the creditor is not able to seize control of the company and force liquidation to pay off a debt.

Unless the government hugely slashes spending and raises interest rates, he sees a dollar crash and US sovereign debt crisis in the coming years.

You can always get a copy of the title binder at closing and have the title company "mark it up" (initial the elimination of exceptions that will be taken care of out of the closing - ie. satisfying liens, taxes, survey exception, mechanic's liens, etc.)

If you've been watching the recent economic events in Europe, you'll have heard of the Greece debt crisis.