Believe it or not - HMLs at this level are actually more common then at smaller amounts.

This is a group of average people from a lot of different backgrounds and skill levels.

I can see the fallout coming when the LTV is already too high and the "shortsale" brings the actual purchase price down to a corrected market level.

If you're planing to buy fixer uppers they may not be financeable, you wwill have to pay cash and refi down the road.

I have quad 4 unit buildings that are town homes.What I have found is it is much better to put all tile on the main floor instead of carpet or vinyl.Upstairs with the carpet it doesn't get worn down as much as the main level.When you evict a tenant with tile it is mop and go and not fixing tears in vinyl or carpet that can't be salvaged.The dirty carpets tend to attract bug problems as well.You can find tile cheap and buy a big area rug to warm it up for cheap.The key with tile is the contractors can kill you on the install fee.You have to find a contractor hungry for money.I can get tile 12 X 12 for 56 cents a sq ft.Main level I would spend about 229.60 in tiles,another 150.00 in mix for bonding and grout for finish and just put back old finish trim down and repaint.Can get a hungry contractor for 75.00 a day to tile day one and finish grout 75.00 day two.Total cost 529.60 for main level.I have 1,178 sq ft with 2 story but I leave carpet upstairs and on the stairs and tile the main.Don't pay high prices.Be patient and turn over rocks to find the great deals.

I want to take my business to the next level by establishing the documentation and processes that insure compliance with state/federal regulations and create notes that are marketable to note buyers.

If he's a landlord... he's not an idiot (well maybe some are)...So this means... either one he has some-type of motivation aka need money, rate reset, law suits, or moving to Zimbabwe (JK on that part)... you need to find this out...What I've ran across is... alot of "land lords" want to dick use investors around because they want to just - "see how much they can get"...So finding out motivtional level is huge.

Whatever the income level (first property rented for 1200 in SE Memphis, so not talking about "hoods") Detroit, Cleveland, Atlanta, Memphis where ever.

Greg it will depend on the portfolio of the bank and how many performing versus non - performing assets on the books.The bank might not want to refi that type of product with too much of that type of asset class non-performing on the books already.They might have too much defaulted commercial all together.For value add plays typically occupancy is an issue.The lenders will want certain occupancy levels obtained for at least 3 months depending on loan type and typically stabilized for 6 months to a year or longer.If you buy an apartment building at say 50% occupancy using a hard money lender or private money and the going vacancy rate is an average of 10% then the lender wants 90% occupancy averaged out over time.When you refi you will only be able to go up to a certain percentage to cash out or can just convert with no cash out to the lower interest rate.Regular banks do not lend usually on sub par occupancy levels for the area.They see it as too risky and the say 60% occupancy can quickly go to 30 or 40% and they have a foreclosure or short sale on their hands taking a loss,plus inspection reports,attorney fees,appraisal and environmental review etc.

Of course, as time goes on and you continue doing a good job of feeding that mouth, your score will return to its former level if not go even higher.