Essentially we hadn't begun the process of putting together our spreadsheet that runs the numbers, knew what kind of properties we were looking for, or even how to be a proper and ethical landlord.

And you would be spending more in demo and more to essentially build a new house versus updating an older house.All that being said, I am confused about your idea that the foundation is rotted and may need to be demolished.

Not sure if that makes total sense, but essentially scale out to 10-20 doors via lease/options instead of straight rentals.

And, naturally, there will be more paperwork, since you're starting from scratch in the eyes of that new lender (who does not care about your 40 day old pay-stubs, etc, they want the most recent ones).

He would build then sell the house + lot (it's essentially a loan to him so he has some capital to play with since it appears most of his is currently tied up). - The return has a hefty minimum but can go higher depending on the sale price

So they have more business than they can handle at the moment and the paperwork and process for a bank (and the loan officer) is the same, so they rather do a $400k loan than a $40k loan.There are a few issues with the type of properties  (I used to say sub 50k, but now it's really sub 100k). 

I've been a bigger pockets fan since 2017, read a lot of the BP books along with Rich Dad Poor Dad, and all the other essentials, and Michigan looks like a great market so I will definitely be interested in starting our investing career out there in the near future. 

For the one we just did the lenders paperwork signed by both parties specified that it is NOT a LOAN & does not need to be repaid.GIFT INSTRUCTIONSDONOR:1.

So it gets appraised or essentially inspected to a basic point.

Not only this, but the sale of my home first gave me the cash position to purchase his home after so essentially NO MONEY OUT OF POCKET.While this was going on, I had to get creative with financing as my debt-to-income ratio wasn't going to work with a traditional Fannie Mae or Freddie Mac product.