I think it's much smarter to play the long game and make your goal to pay off the properties as fast as possible with the intent to hold them indefinitely.

With the market crash a couple years ago, it became evident that investing for appreciation was a risky game, and a lot of new investors are deciding to focus on the less risky aspects of investing -- positive cash flow.2.

a small minority get rich in real estate through pure tenacity and luck, vast majority that are able to 'make it big' already has strong foundations (i.e. capital).If you're already gotten as far as med school, the smart thing is to finish it, get a real job, then use the high income to leverage low interest debts for investment.Jumping ship this late in the career game from a high trajectory track to something like real estate with no experience or other foundation is a calamity in the making.

And what's the game plan with it?

Before going to the office, I catch up on the news and scan the night's email from home, and once at the office it's game time.My day is about a third "problem solving".

They may have not had the origination platform to conduct HARP Refi's, they just service existing loans(default servicing too, so they probably do HAMP & SS for the investor).This was the case when I worked for Green Tree.

So I'd look at how your 401k can compliment your total investment portfolio, including real estate, and structure your investments so that it makes sense for your end game scenario.

Given your example you would lend a maximum amount of $16,100. of the purchase price. (23,000) You want the rehabber to have skin in the game.

OTH, a servicer who is registered and conducting business with no skin in the game will be viewed as giving testimony that is unimpeachable compared to an individual note holder.

Skin in the game changes the perceived risk.