I would think many on this site would like to measure the percentage of their net income that is contributed by passive income versus income that requires their direct involvement.

Jerry: Guitar lessons versus RE wholesaling lessons is a great example of the differences in education costs.

Reason someone would over pay is the owner financing and their ability to not get financing at that time.I'm using the 50% rule and your 20% down... financing 50k @ 8%.The balloon would help you around the overpaying some and give you a chance to get your LTV down a bit, but you'll still have to bring even more cash to the closing to refi...You still have the lousy CoC which may only get worse when you refi (you'd have to look at the extra cash flow from the lower payments versus the additional monies you'd have to invest to see).

He calculated the numbers based on his grandmother’s cut of the equity, versus the hard money lender’s cut of the equity.

Are you having difficulty getting your price today versus two years ago?

Ivan,You posted in another topic about an inheritance.I commend you for not going and buying a bunch of crap with it but wanting to invest it.I have seen some friends inherit large sums of money in the past that the grandparents and parents sweat blood and tears for them to have and did without to give them a chance at a better life.The friend was irresponsible and lived "high on the hog" for a few years and is now broker "working for the man".I think what you are underestimating is what it will take to do repairs correctly,the time involved,and how buying incorrectly can wipe out a large chunk of your wealth.Not knowing what kind of existing annual return you are getting on your money is a huge red flag.You have to compare the RETURN versus the RISK when moving money around or allocating a percentage of your portfolio of investments.If you don't you are "shooting in the dark" and might as well take a trip to Vegas and play the slot machines with your money.DON'T talk yourself into something and say "it's not so bad".That is what I am seeing from your posts and is the number one mistake of new investors.

Consider the "give" versus the "get".

Further, I adjust all of the descriptions and use real actual words versus real estate acronyms- you know, speak to the buying public in language that THEY understand.

You may want to read the thread from a few weeks back about damage becoming a criminal act (versus civil).

The more a person likes and trust you, the more likely they are going to do business with you versus a competitor.Getting 100% funding is possible if your deal is the best deal for the lender.