I also ask this based on the end investor, how much meat do you leave on the bone for them, as far as the equity between fair market value and agreed purchase of the note?

. ;-) Rates can be anywhere from 5 - 6.25If you need equity I can help you with that as well

Purchase price: $235,000 The current 11 Home SFR Bulk REO Portfolio is offered As-Is and has ALL BROKER PRICE OPINIONS and TITLE (O&E) Reports Included.Asking Price is $235,000 (OBO)Total BPO Valuation of the Portfolio is $392,800Based on BPOs Estimated Equity Gain Total at Purchase is $157,800 What made you interested in investing in this type of deal?

If you have a decent amount of equity in your current rental why not HELOC or refinance and just pull money out of your rental to fund your next deal.

Forrest, I would also pick a primary focus of equity growth or cash flow (of course try to maximize both). 

You need to structure the deal as follows:700k purchase 100k construction (deferred maintenace)800k total acquisition20% down consisting of two parts... 80k refinancable equity from your condo and a 80k seller note 2nd mortgage (your dad) Wrap up those big ticket deferred maintenance items right away.

@Nathan Wankel @Kyle Hern Indiana also has very favorable landlord laws.

Any closing I've conducted where my client was forced to purchase under the gun, there was a serious underlying issue. when buying pre foreclosure rescue lease backs were legal in Oregon and Washinton that was our specialty.. and we did many a closing within 24 hours of the sale.. of course we did it ourselves.. being a non attorney state we could simply draft our own deeds get the seller to come to my title company simply for a notary.. then run it over the court house and record.. hand them a check for whatever equity we negotiated.. then courier a cashier check up to seattle to the big foreclosure mills and bring the loan current.. 

If I 1031 exchange the property with the Heloc on it, the heloc would be paid off and closed during the sale of the property and I would be rolling only the left over equity or in this case 20k into the new property.

Filing the claim will only cost me about $125, which I could recoup if the judge rules in my favor and they pay what is owed.