Purchase price: $240,000 Cash invested: $60,000 I purchased this duplex in distressed condition using owner financing for $240K and secured a $60K hard money loan for renovations.

Sometimes you will get a seller who comes back and declares they want off of the loan, or a nasty letter from an attorney saying that you ripped off their client, or a letter from the State Attorney General that you get to visit them in their office.

I started listening to the podcast and reading real estate books about two months ago, and I’m excited to take my first step into real estate investing.I’m currently in Spokane, WA, and I’m pre-approved for a loan.

That being said, I had to translate a lot of documents on my own for the loan process, so there was more effort involved.

Cash flow is definitely the biggest challenge; both in terms of finding properties to buy that cash flow with a loan on them and just company wide given interest rates and labor/material is up and, at least where I'm at in Jackson County, MO, taxes are way up too. 

A brand new business getting a loan to purchase a property will almost definitely be at higher rates than what you have now. - When we've review these options with clients the ending outcome is typically that it's easier to forgo the 121 exclusion if you want to keep this property; and do a cash-out refinance (taking on more debt isn't taxable) instead. 

Prioritize deals that offer steady long-term returns over ones that seem too good to be true.DSCR Loans for Growth:Debt Service Coverage Ratio (DSCR) loans can be a game-changer for investors who want to scale.

Consider an installment sale if financing is an issue.This post does not create a CPA-Client relationship.

I wouldn’t want to hold the loan for too long, so ideally it would be a 5 year term, presumably ballon payment at the end.

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.