Why let 6 months rent per unit sit idly earning a fraction of a percent if you could pay down debt with it until needed.

I am of the the opinion that if your return is less than 25 percent, the investment may not be financially viable at some point in the future.

The lender has a 25 percent LTV ratio.The borrower has been in default on the original seller-financed loan for about 6 months.

I agree 100 percent John.

@John Thaxton - just for the record on the DFE program, you can finance up to the total of your purchase price PLUS closing costs and prepays (which can add a few more percent to how much you can refinance).

If you have a 100,000 heloc they use one percent of it as debt.

The seven to nine percent range is a good place to start.

We did make two offers and as usual we made the partial offer at a higher per cent (21%) as follows:Full purchase:N I PV PMT FV120 18% $31,636 $570 $0Partial purchase:N I PV PMT FV60 21% $21,069 $570 $0As we already suspected, Mr.

I would say if you could get either rehab or purchase price lower(20 percent?).

The more lax underwriting and seasoning requirements are definitely the reason I went with the portfolio lender. 2% Max jump per rate increase, 6 % max jump lifetime.