A lot of my out of state real estate clients really like this market because the macroeconomics look so good for this market - population is growing, job growth is growing, and so many companies moving and developing here.

These properties are currently being rented for a great amount with great cash flow.Most of the time, these properties are not in the worst condition, but they are not new either (I think about $10-20K in repairs needed) or even properties that have great tenants paying great rent in them.Now, if I analyze the MAO with the standard calculation (ARV * 0.7 - repairs - fee), it won't make sense for the seller, and he won't sell it (found out the hard way haha).What do you guys do in that situation?

Where the property does not currently cash flow, would getting and paying for a personal loan in my name, lead to potential cause to pierce the vail in a potential legal dispute if all the expenses associated with the loan is ran through the LLC?

Let's say the buyer pays off the balance in five years.

As a client of 5+ years, it has just been TOO MUCH, recently.

An entire blog could be written about the cost of manually driving for dollars… such as paying for gas, depreciation on your vehicle, the cost of your time, etc.In another example, imagine you are virtually driving for dollars in the same target neighborhood and zip code..

My other options appear to be limited and would most likely renovate, sell at ARV , pay cap gains and then reinvest the proceeds into hard money deals or commercial RE… Thanks again guys ….

Don’t skimp on screening or you will pay for it.

Cah out can be used as an asset and for PITI reserves and a Heloc can "Never" be used as an asset or PITI reserves.I generally work out the options for my clients to compare a cashout to a Heloc so you can see payment to payment, overall costs and rate.

o Full doc (pay stubs, taxes, personal DTI) or light doc (asset-based, DSCR)?