@Stacy KellyOur commercial lender did not do a pre approval, but they were able to provide a conditional commitment which is basically a letter that confirms the banker has spoken to you and knows how much money you need.

Bad deal for him...you are committing to 5 years of bigger expenses if you are locked into the loan.

Most of the physicians I talk with don't have the time to manage BRRRR projects, there may be other strategies that fit better with your time commitments.

Tenant reply by email and they request a conference call to discuss and negotiate the leasing terms that will be suitable for them if they like the location i) your friend will then coordinate and connect the national tenant with the Fund Manager for everyone to get on a conference call or a zoom video to negotiate the term details such as how many months free rent, tenant improvement allowance, if they can go dark, any exclusives etc etc (Your froend should not worry about that part because the Fund Manager will can handle all those details) j) after that a Letter of Intent to lease will be signed by the parties reflecting the National Tenant’s intent time and proposed commitment to lease the space for 10 or 15 years with a NNN lease (NNN means: Tenant pays the lease plus taxes, insurance and maintenance) and a corporate guarantee (lease is guaranteed by the national tenant for the duration of the 10 or 15 years lease and it is backed by their entire company and their financing bank like Wells Fargo) and it will also reflect any other terms such as escalation of rent over time, renewal option for the lease if any etck) The National tenant usually sends a designer or representative to take a walk through the property and then they are ready to sign the lease agreement l) It is then that your friend will assign the deal over to the Fund Manager who will pay all cash and your friend will get an assignment fee (usually between $40k and $150k)Here is how the numbers will work: Property vacant under contract say $600k and now with a national tenant lined up to pay say only $5k a month NNN (meaning a base tent of $60k a year and the tenant pays taxes, insurance and maintenance and the lease again has a corporate guarantee) the property will then be valued easily at over $1,000,000 (6% cap) The upside instant increase in value is $400,000 and usually the assignment fee that your friend gets will be 10% of that upside which is $40k all done within 60 days (assignment fee could be 25% of upside if Tenant commits to 15 years and in this example it would be $100k (25% of $400k upside value increase) Please note that: - No real estate license is needed - No additional cash is needed from your friend - No rehab process is needed (all is negotiated as discount to Tenant to do improvements the way they want up to their standards because Subway has different needs than Starbucks or Fat Burger Eyc based on their style and standards) - No due diligence or inspections are needed on your friend’s part, it is all done by the Tenant’s Representative- There is No Down side risk because if no tenant responds during the 45 days due diligence, your friend can simply cancel the contract and get her $5,000 refunded (or whatever amount she put in as earnest money deposit) - This can be done wherever your friend lives in the US - Almost all is done by internet and phone except for a couple of visits to the property The fund manager gives the training, the Proof of Fund, the process, the script the support, the tenant list, the negotiations, and the cash to close because the property eventually gets assigned to the the deal estate fund This will not happen every 60 days but your friend has no downside, a huge upside and if done just 3 times in an entire year she will easily have over $120k in assignment fees’ income, plus experience (which btw achieves her goal of $10k per month) Here is the best part, usually after a couple deals someone like your friend will realize that she can grow on her own by getting the properties under contract vacant at a lower price for herself, then she can get a national tenant interested and committed, then she can then get a loan on her own and purchase the property at $600k.

Definitely committed to getting into REI, and have enough capital to get started with a couple purchases in the area, but just trying to figure out what works in the market I'm interested there in Phoenix, and what strategy will be best for me to chase after.Sorry for hijacking the thread with a seemingly different topic.

commit yourself to something for a few months and you'll yield results. 

I personally think that house hacking is less about maximizing tax benefits and more about low capital commitments (for OO conforming loans), forced appreciation, help with principal paydown, and ultimately, unlocked equity on sale or refinance. 

had first tenant commit suicide in my apartment.any advise?

I understand there is going to be a considerable time commitment on my end to start this up, get the systems figured out etc.  

I had about almost 3 times the amount needed in verbal commitments.