Hi @Somesh MukherjeeFellow lender here - Not sure where you are in the process but as Matthew said - location is top priority, not just in terms of the tenant pool but depending on the loan program you're seeking (say DSCR), the comps in the area can also impact your appraisal and what rate and term you'll qualify for.

Personal loan for the rehab.

ROI do not take into account time value of money (selling the asset at year 8 instead of year 2 at the same price, your ROI is relatively similar, but your IRR is far from being the same).4- LEarn to analyze your portfolio: aggregate altogether all your assets and analyze if there's any project cash flow that would be required (balance of sale, loans, etc).

My partner is a commercial lender and is did the hard money loan for the purchase and is working with the new buyers on a loan.

Here is what is being considered:SCENARIO 1):1) Parents loan us money at X% rate.2) Loan terms would allow for early payment without penalty (we would get a conventional loan in 2-5 years to pay parents back).

I am a Veteran and trying to assume the loan from my sister in law who is also a Veteran.

We are going to install cameras, but I don't have time watch the cameras all day, so they will be more for monitoring and for evidence, if I need it. 

This is certainly text book and absolutely the proper way to analyze a deal.Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously. 

The cost of the loan is so expensive that there is no room for much of a profit.

Hi BP,I'm looking at a house that I've been eyeing for a few days. It's a total gut job but I believe it's priced accordingly - I'm going with a contractor today to get some numbers since the area it's in houses have ...