If rates are still low at bond maturity, they will likely do the former, but they can swap a certain percentage of properties within the portfolio during the term, as outlined in the terms of the debt—in these bonds about 10% of the properties can be replaced to balance the portfolio.So, what about economies of scale?

Difficult to refinish or replace flooring while tenants are in a place.

I have heard lately about Fannie and Freddy Mac small balance loans.

Some background: I never keep a revolving balance on any of my credit cards.

Today its really difficult to find cash flow deals.

Is that difficult to get because of specific requirement, like high occupancy rate? 

Very difficult to get a loan for a wholesale deal depending on the condition. 

For Investments you want to balance equity and leverage.

Peter- without actually calling the Syracuse city finance department it would be difficult to know exactly what the sellers star credit is.

Refinance at the start of Year 2; $185k ARV * .7 = $129,500 - $50k balloon = $79,500 + $12,744 [cash flow from rent with new mortgage] = $92,244 cash flow Year 2Sell in Year 5; less the balance due on the amortization schedule $121,909 = $63,091 cash flow Year 5The present value is now $135k which means that if I put in $140k at the start ($80k purchase price + $60k rehab costs) I overpaid by $5k.I realize there are a lot of limitations to this, for starters I didn't increase the rent at all and I assumed no appreciation beyond the ARV.