I appreciate the insight as I didn’t know about the non arms length transactions and how the IRS taxes the equity gifted.

With a 506(b) you can only offer to ppl who you have pre-existing relationship with prior to your deal, not during. 506b Explicitly prohibit you from soliciting/advertising.

Sometimes all that is needed is a LOE or letter of explanation to the court that this is not an arms-length deal, and that you're getting a "family" discount. 

Also, I should have explicitly thought about exit plans if **** hits the fan at any step along the way.

Lol all it takes is clicking on a profile to see that you’re advertising the fact that you’re a coach regardless of if you explicitly offer it on the forums.

My husband is buying one right now with 5% interest 7 year arm. 25% down payment. 

I've collected rent in bars, restaurants, casinos, WalMart, my driveway, at an armed security gate at a refinery, a medical clinic, a hospital room, and ATM's at a bank and convenience store.  

I'm working to reconcile real-world advice with the text books.Here's the balancing act: don't take too long to pull the trigger on my first property, but go into that first deal armed with knowledge and education.Keep the advice a-comin'!

If there is a ton of equity the bank may not see it as an “arms length transaction”.

These are all local community banks that only serve our seven county area:3yr ARM @ 4.25% 2% max per adjustment with a 5% lifetime cap (lend at 80% ARV)5yr ARM @ 4.75% 2% max per adjustment with a 5% lifetime cap (lend at 80% ARV)5yr ARM @ 5% 1% max per adjustment with a 3% lifetime cap 5yr Balloon @ 5% no lifetime capFixed 15yr traditional at 5%Thanks for any feedback you might be able to provide.