What are the negatives concerning using an already established line of credit to generate a down payment for a buy and hold rental?

That said, there are some lenders that will shy away from providing funds to a buyer who is participating in a double or simultaneous closing (they are concerned about both fraud and chain-of-title issues), so you could run into that as well.My best suggestion is to find lenders who will support your purchase and sale strategy and "encourage" your buyers to use your preferred lenders to finance their deals.

I read in a thread concerning California where multi unit residentials are selling around 4-5%.. which lead me to a good question..

We just went past the 90-day mark from purchase.We are getting ready to list the property for sale - our realtor has concerns about transferring now because of resetting the 90-day rule for FHA buyers.

I don't think I'm allowed to put a link in the regular forums, so for anyone interested, just go to the biggerpockets classifieds and view the post titled "Free LLCs & Corps from Intuit's MyCorp (Ends Dec 31)".Also, anyone can feel free to reply with any additional questions or concerns, and I'll be happy to help.

I'm NEVER been concerned about a magic equation for expenses or cash flow.

What I mean is are you lease optioning for cash flow or are you L/O for a big payday at the end and less concerned with getting maximum cash flow.If you don’t care as much about cash flow, you can set your lease payment for just above your mortgage payment, have a nice spread to what you owe and what your option price is and make a nice payday down the road.

I'm not really sure who(as far as various professional types are concerned) to tap that would assist me with this particular investment objective.

I agree that If I am holding property indefinitely, the recapture tax is of no concern to me (who knows if or when I sell), and the same amount of depreciation will get deducted over time regardless of which method is used.

They have been on the market for two months. “With all this oil money in the region, I thought the Dubai property market would be secure from the global problems,†the 30-year-old Bentley owner said, reached on his mobile phone on the beach.