For DSCR, a 3 yr prepayment penalty and paying 1-1.5 points will put you pari passu with Conventional products right now for the most part. 

Thus, I'm trying to find a convenient way to accept payments and transfer the payments to pay the mortgage. 

And in your market the lot costs are so low you need to pay cash for them and may still need more equity/cash.. in higher priced markets were the lot cost might be 40 to 50% of the total cost to build you can get a land advance but your still going to need equity/cash to do those as well.so thats your mission find a captial partner.. or put a syndication together to raise the money and partner to build out the homes.. really going to depend on what kind fo NET NET NET profit is on each home after land a build costs. 

He has now asked me to pay the contractors for the first stage, about 24 lots, for dirtwork, sewage, roads, curbs, electric in exchange for some of the lots.

Many people forget to include a CapEx fund, Property taxes, and even the amount of Income Tax you'll pay on your monthly income.

Just now I see 2/1 in Castro valley where garage has been converted to living room , add bathroom here for 20k here and you pay 1k in mortgage with second tenant

Hello, I think it’s really awesome that you’re just now beginning and you are already coming to the forums to learn so the first thing you need to do is to continue to stay on the forms and you also need to be reading all of the bigger pocketbook and start listening to their podcast to soak up as much knowledge as you can and as long as you do that, you will have all the knowledge you need to start and regarding your question I do not advise to buy a single-family house just to live in it without a rental property aspect so it’s OK if you want to live in the house as well but you will have to either get a multifamily property or you could also buy a single-family home and rent out the other rooms  now see when you have a property that you use just for your family then you have to pay the mortgage every month which is building your equity, but that responsibility is solely on you whereas if it has some sort of rental property aspect, there will be other people helping you build that equity if you were to buy a property just for yourself that is something that will be taking money out of your pocket every month while as a rental property if you buy right will be putting money in your pocket every month the only exception to what I just said is if you buy a property for yourself or just for your family to live in, you could do a live-in flip to where as you’re living in the property you rehab it while your living there and if you buy right with enough knowledge, then when you turn around to sell the property, you will make profit

Save and pay down mortgage to 20% equity ($292,000).

She will be finishing up her doctorate and finding a job and I will be finishing up my degree and getting a better paying job (hopefully) in the next 6 months.

(Our ROI is greatly enhanced by the fact that we are receiving 10% interest on the $615,000 while paying out 4%).3.