If you use excel, it has a built in formula for Cumulative Principal, that is what I will put here, although you can use a financial calculator or short hand math as well.

On the other hand, if money secured by a NOO flip were used instead for a family vacation, then that could be a consumer purpose loan depending who the borrower was (and probably a hundred other things).

Practically speaking you end up at the same spot as a 75-80% on 20 year deal after a few years of amortization and rental holds very rarely go bad within the first two years because owners are likely to prop them even if they don't cash flow for a wile before they throw up their hands.

On the other hand, the 10 “riskiest” markets named were: Los Angeles Gary, Ind.

This will do a good job of giving you hands-on training in terms of dealing with tenants, maintenance issues, and the overall pain/pleasure of owning income-producing real estate.

On one hand the owners of the vacant houses with code violations are being hammered with administrative fees and code fees from the city, on the other hand if they have been vacant for so long I am sure many other investors have already gotten their hands on the owner or something is wrong with the property to not have been sold and rehabbed by now.

Even if you use a PM you should know the law.As far as how much in reserves, see if you could scramble to get your hands on 6 months of rent value on short notice if needed.

Off hand, I'd think it's probably putting you or the finders in an illegal position acting without a license, but can't say as I don't know what the relationship is.

I don't pick a note based on return, I pick notes based on safety first then I look at its return on investment.Learn everything you can.This market is full of bad deals, overshopped notes and notes that have been in so many hands it could sell tickets.

I was thinking something like if I talk to him about the repairs required and then tell him Im willing to solve his problem by taking the property off his hands without getting the higher authorities involved.. yet?