Hi @Debra A. - I believe a new update was announced yesterday (after your post) that for new HomeReady loans, they will only go up to 80% AMI.A great post and a great program nonetheless!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That OOS property Class rankings are often different than the Class ranking of the local market they live.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.

So you can make a few more formula driven if you can use percentages like that.Now you just need some forecasting - how's it going to look 5 years down the line?

@Janis A.  I

having an old fence post driven through a sewer line, it had probably been that way for years and it finally decided to fail right at the inspection.......needless to say we had to dig up the yard and fix it.

Lower cap rates means higher sales prices and sales prices are driven up by demand.

Builders risk – Covers a property during the construction process.Once the building is complete, you will need to move it to a Vacant building policy or standard Property policy.Most commercial insurance packages for builders will have property coverage that takes this vacancy issue into account.Work comp – Covers your employees, OR any uninsured subcontractors & volunteers.GL – Covers Claims against you for Property damage (Your new building falls over and damages neighbors’ car) and Bodily Injury (slip and fall on the property)Auto – Covers Claims against you for Property damage and bodily injury from your commercial auto.Auto – Hired & Nonowned coverage – protects your business against claims form your employees and subcontractors vehicles that are working on behalf of your business.Most employees and subcontractors are typically driving their personal vehicle that is insured personally.Inland Marine – Covers equipment, hand tools while in transit and on job sites.It can also cover building materials to and from the job site (Cabinets get damaged while being driven to job site)

However, stuff doesn't turn on a dime and is driven by a couple of things:1) Income growth of rents and vacancies2) Expense growth in comparison3) Cost of money which looks like its going to be low.Short answer - In most markets, there'll be upward pressure on pricing.  

That said, I run data-driven market reports about Madison and Dane County.

Since the hard money industry is not credit driven, many hard money lenders will finance just about anyone if the deal is good enough (i.e., low LTV, cash flow, significant cash investment by borrower).In fact, a few years back a number of residential hard money lenders had downloadable preprinted proof of funds letters on their websites; you merely filled in your name and presto - proof of funds!