If this lease-option "buyer" is a relative newbie (and I'm betting he is), then I would NOT do this deal.

Is that a good calculation?

If the prime rate was to climb a few points, I am willing to bet all the banks will jump back on board.I have not had a problem with my HELOC from my credit union to date (knock on wood) and they seem to have the lowest rates, lowest fees ($0), and the simplest approval process.

Tim - I'll bet your Dad taught you the meaning of real work, something far too many don't know much about.....

Based on your posts, I bet you'll have a lot to offer to the forum!

I just realized an effective/realistic method to calculate cashflow and as well as knowing how expensive Hard Money is.

There will always be some hidden expense that you didn't figure into your initial calculations that will sneak in on you.

So, subtract your monthly mortgage cost and calculate how profitable they would be.Assuming they're not losing money I'd probably consolidate for a bit, not take on any more debt (of any kind), pay down all debt, but particularly pay off the SMALLEST loan.

YEAH BET GOING TO THE LOCAL REA WOULD BE A START, HUH?

Also, assuming you calculated the NOI correctly, your cash flow per door is only $62 per month.