Tina and Joseph go back to the same bank and get a home equity loan for $360,000 to buy a turnkey rental property in Jacksonville run by an extremely reputable management company that provides a steady $200 in cashflow a month, great passive investment with excellent appreciation potential, just like the BP community told her.For the next five years they continue to pay off the original mortgage and the home equity loan, and by 2013 they owe $70,000 on the original mortgage and $305,000 on the home equity loan.

At the end of day it is always better than this worst case and have excellent returns.

Most of ours fall well below 700 credit but they are all excellent tenants. 

In order for me to transfer the lease to my name I have to build a 300 sq ft structure on the property so that she is not transferring undeveloped land to me (a policy to make sure people live and build on the land and not just sell after receiving it).

It also can provide income without too much risk as long as they've received a sizable down payment and properly filed lien on the property. 

I remember 17 years ago, in year 2000, all of the sudden, the rent in San Jose became very expensive, most landlords in San Jose said they received more than 10 application each rental unit.  

Any money you receive will likely be taxable and any reduction in debt will also be taxable. 

Also received a life story of woe to go along with why they couldn’t pay on time.

Here is an excerpt from an article from another BP member regarding delayed financing:If you buy a property with cash (or with a HELOC) you can receive a cash out loan on Day 1.There is not a 6 month waiting period with receiving a cash out loan if you purchased a home with cash or with a HELOCBUT you will be limited to the amount of….Your purchase price + closing costs (costs when you purchased the home)OR75% of the “After Repair Value”…WHICHEVER IS THE LOWER AMOUNT (super important)These rules are important to understand so here are two examples:Example 1: If you purchased a home with $50k of cash, and put $30k of renovations into the loan, and the home was worth $100k. 75% is $75k and $50k is your purchase price.

This will give him incentive to complete the project and receive the final payment and not have to wait.