I hope your attorney can help you and remember to stream your energy to find the next deal yourself so you can cover this loss; this is the most helpful way to let go of that feeling of being scammed.

If the market rents do not cover the mortgage, you may do a no ratio DSCR for a higher rate/reduced LTV  Which most likely the 1007 will be nowhere near the revenue generated by a PadSplit operation.

Now let's say I find a triplex that covers the 1% rule but combined cash flow from all 3 doors is roughly $150-$200 or would you want to keep it at $150-$200 cash flow per door with the 1% rule applying? 

Get a good cap rate basically covers your financing and ideally 20% more for maintanance, prop management fees.

And that's where they get in trouble.I have never taken money out of our REI portfolio to cover living expenses.

I have a one page lease addendum to cover this, that is executed with every tenant and every lease.

Hi Adam,The seller pays the seller commissions and (usually) covers the buyers commissions as well so you shouldn't worry about those fees.The 10% vs 20% I feel like is a personal opinion.

So, he's claiming the home warranty won't cover... fine, what's the repair cost?  

First off I took the realtors suggestion and listed with the property management company he promoted to me.

The biggest thing with this is if something major happens are you legally covered if the unit is illegally rented.