You might be rewarded in the end.

I think what they are seeing is competition in the business, more getting into the market who are seeing the possibilities compared to other opportunities. my 2 cents...

Watch out for the tax man if your dividend is excessive compared to your earned income.

According to CoreLogic, "Approximately 1.3 million homes, or 3.2 percent of all homes with a mortgage, were in the national foreclosure inventory as of August 2012 compared to 1.4 million, or 3.4 percent, in August 2011.

Rather, he may be comparing the cost of trash outs versus holding time.

The average interest rates on the loans are 7.38 percent which is extremely high compared to the interest rates I have on other props that I have just refinanced.

.- I pay the $40K + interest (interest rate comparable to that of stock market or other typical $40K investment) within 3 years, at which point the deal will be done, and I'll own the home outright..- If I'm unable to repay the $40K + interest within the agreed upon time, the investor automatically becomes a lienholder on the property and is entitled to his original investment plus a % of equity returned if any (this % is part of my question, what we be reasonable, given that I'm making the monthly payments?)

I have an option to purchase property from a relative so I am getting a great price on the lot compared to others in the area (1 acre is going for 150k in some areas, I would be receiving 2.5 acres for 60k).

California, for example, is horrible compared to Texas, where the standard to hold a property owner liable for a contractor's negligence is exceptionally difficult.

You might compare cost differential between doing this new and just buying a building with a 3rd unit already added plus cost of rehabbing the already added unit.You are saying a unit value in your building is 55k.