I’m finally ready to take the plunge into real estate investing, but with two kids, I’m nervous to use any of my own cash for the first project.

This friendship is already destroyed.When you do finally get them out, perform a walkthough and send them a bill for every repair that you do.

You can use a VA loan or an FHA loan for small multi family property as well as single family. 

I am trying to figure out how J and Dave got to $65,000 in the following section (I am reading the eBook version so page numbers won't correspond with the physical book):  Towards the end of Chapter 2; "Finally, notice that the owner equity in this business totals about $65,000; because John is sole owner of the business, that $65,000 is the value that John transfers to his PFS and can claim as his ownership value in the company.”Everything up to this point was clearly explained on how they got to the number, except this $65,000.

Is there some loan product or solution that I should look into to try and get enough for this property?

Due to the high foreclosure rates, many lenders will not consider a deal with less than a $100k loan amount.

Those two together create equity.Here's what I want you to understand about “buy and hold” residential real estate:Let’s use a single family home with a property value of $300,000Let’s use an initial loan amount of $240,000Let’s use an interest rate of 7.25%And I’m going to give you $150 of cash flow per monthUse a 5% appreciation amount for your property per yearLet’s see what happens after 5 years:After 5 years…$150 of cash flow per month = $9,000Your mortgage has been paid down to $227,000 = $13,000Your property is now worth $382,000 = $82,000So that’s $9,000 of cash flow, $13,000 of principle buy down, and $82,000 of appreciation.

@Richard Hoyte I haven’t been able to take advantage of any low down payment loans so have been stuck needing 20% down on every deal plus closing costs and cash reserves.

(i have not negotiated price any as of yet)$6533 loan pymt mth. 

Since I will now be the host on Airbnb, does this count as materially participating and can I finally take the STR loophole?