After rehab, you can get a tenant to pay those holding costs.Makes the math a bit better.Good luck!

Anyway, the short responses to your questions1- live-in renovation in 2011 FHA-insured loan2- tenant screening is key if you are going to be neighbors with your tenants...and introduce yourself as the "property manager"...separation makes things easier when you live next door. 3- first time...total guess...got lucky and settled into a $40k equity position from onset...did lots of homework, but limited to zillow back then...4- don't be afraid to pull the trigger on a deal. consult a great local agent and be confident your numbers meet your needs.

You need to do your homework and know exactly what you can do prior to even making an offer.

As long as you keep doing the math on properties you will be fairly well prepared.

You read the meter and then do the math

For easy math, let's say you purchase a property for $50k with a private loan, put $25k into fixing it up and increase the value by $25k so it is now worth $100k.

The downside is that you really need to do you homework if you are choosing investments outside of those offered by the plan, and unfortunately many people that choose the self-direct option seem to just randomly pick investments without looking at performance, fees, etc.

(Of course, the payments would be monthly; I listed annual to keep the math simple.)Thanks!

Where would they set up the computer, do homework, work on crafts or hang out with their friends?

option sells/advertises better, but the math says the monthly PMI option is actually better for the borrower.... in addition to 0.19% being a smaller number than 0.25%, monthly PMI drops off once you have the equity, but a fixed interest rate is permanent.