I am a new investor who is in the initial learning phase of real estate investing.

I have found a 5 unit property where the Seller is willing to carry a 25% 2nd mortgage. (70k purchase price, $2300/month gross income, $1300/month expenses) Initially I thought I could have the Seller 2nd cover my down payment but my research here on BP has taught me that any bank will want at least 10% from my pocket plus closing costs, if I can even get that.

So if the wholesaler has the property under contract for 20K, and your buyer agrees to buy it from the wholesaler for 26K, once there is the initial verbal agreement your buyer can tell the wholesaler that he'll pay 24K on paper, since he'll be giving you 2K.

More broadly, how does a lender independently verify ARV?

I was initially looking for something to buy in Austin, but after touring a total slum property that barely yielded 1.4% I shifted to St.

You can see the resort where we built our log home in my website link.It went so well initially that we built 3 more.

So you could set it up initially with your 6 rentals and use the cash to purchase and get several more rented.

My initial thought is to make the formula: 70% of ARV minus (Repairs + Holding Costs + Closing Costs When Buying + Closing Costs When Selling).

Good stuff, So what I am thinking is using cash for my initial purchase for myself...hoping for a nice duplex.

Here's starting pointhttp://druidhills.org/cityhood-annexation-options/city-of-atlanta-annexation-initiative/Welcome to BP!