@Anne Chiramberro,Absolutely, it is a hard decision and it sure seemed like a harder path at the time!  

I would learn all of that so you can understand what they're talking about.But in most of the country right now, it will be cheaper to buy than to rent.  

Thanks for the input Thomas, That is my current thinking and path.

It's now an 8.5 Cap on my total purchase price and the value has increased from $10.6M to just under $15M. 1) If you are confident that you are in the path of future infill development and can see a 3% spread over your 1st mortgage rate, then it sounds like a no brainer. 2) If you are confident that you can fill the suites at market rents then vacant suites are actually a bonus, IMHO.

Looking forward to the adventure ahead and want it to be the best experience so that we continue down this great path!

I'm assuming our best path (all things being equal) is to mortgage our current house to raise this deposit of say 30% and to have 2 mortgages.

:)thx all of you who've helped give your time and advice. what i realize now is just how hot our market is here in asheville, which makes finding anything that even comes close to passing the 2% rule very difficult, or just about impossible unless i can find a truly motivated seller. i've noticed on zillow that country records will state when a home is in default. i'm sure there's a lag time there. is there a way to get this information faster?

From what I have seen, it appears to me that any instruction given is really leading an investor by the hand down the path to the conclusion they want the investor to reach, that is, working with them.....it's all marketing oriented.Learning means cracking open some text books, reading FANIE MAE underwriting rules, look at FDIC loan examination guidelines, look on finance and banking sites for definitions.

So here is the other side of the coin.I will agree that an application fee in excess of $100 may seem excessive in some areas of the country.  

How much cash on hand you have, your ability to obtain financing, and the amount of sweat equity you are willing to invest will make all the difference in the best path to take.