Pay attention to their actions during the showings.

Probably something simple I am missing or the deal just doesn't make sense.3 condos, the owner has 14 out possible 48 in this complex and if the deal goes through may lead to more deals with her.the condos are 1/1, 2/1 and 2/2, she is asking 76k for the 2 2/1s and 64k for the one bedroom. total 216k, she would hold a second position note for 30k with me putting down the remainder of the 20% down (13,200) and pay closing costs. she would like 6 payments, one each year of 5200 for 6 years which comes out to 31200 total, about 1.5% interest rate if my calculations are correct.For simplicity, I am counting the 3 as a triplex, so rental income is 2325/month, tenants pay for electric and gas, HOA of 185(555) per pays for water, sewer and garbage as well as exterior and common area maintenance, snow removal, grass cutting, etc. taxes are 266 and insurance is 50 month (HO-6) policy which I hadn't heard of before.

If your net monthly positive cashflow is 2.5x your personal housing expense plus all other non-mortgage consumer monthly debt obligations, and you are buying cashflow positive real estate, you can get a normal Fannie loan.

Let me explain.My focus when I started out was "Cheap" Cash Flow Positive properties. 

As long as your properties are cash flow positive, they will improve your DTI ratio (the "I" for "Income" goes up).Debt on a property does not determine who owns the property.Requested example:Purchase price - $100Original loan - $75Down payment - $25Rehab - $20ARV - $160Refinance loan - $120Cash out at refinance - $45 ($120 - $75) (you get your down payment and rehab money back)Repeat

@Jim Froehlich , I love it that you are being proactive and asking before taking action.  

BECAUSE I AM LEVERAGING EVERY LAST SINGLE POSITIVE ASPECT OF BEING A LOCAL INVESTOR THAT I POSSIBLY CAN.

That being said I was wondering if anyone else is in my position?

Pick what you love and use the BP resources to learn as much as you can but don't forget to take action when it makes sense.

Meaning that the multifamily must go into my personal name.If I quitclaim the property to the LLC after closing escrow on a commercial loan, I have heard such action could trigger a “due on sale” clause whereby my total loan amount could become due and/or I could be required to pay a prepayment penalty.Without the LLC, my tax structure is less favorable and I am exposed to personal liability.Any guidance on this situation?