The original issue was brought up by the ever ballooning prices we had some years ago leaving the market with highly over inflated values and lenders with loans that they ended up foreclosing on and taking a huge loss on.At that point the government sponsored entities, Fannie, Freddie, Gennie Mae, and also FHA and UDSA revised their guidelines to say no financing available for flips with large market increases when the rehab costs cant justify the price increase.

If its real wood, I would consider leaving it if its in good condition and is not in the budget.

The investor is not expectedparticipate in the decision of what projects to be invested in but would rather prefer to leave that to you.

BUT...I promised myself I'd start while I'm on maternity leave and can really focus a few hours a day on getting my feet wet.

No real rule of thumb to say a discount will be X%, depends on many factors.I agree with Wayne that you'd be better off with private money, problem is they are usually short term, but there are some little old ladies that would love to get 8/9% for 10 years for the grandkids, but that has other issues too.Now, if you're buying a 100K property for 70K you might do a 90K loan and you may get the 70K, the trick is not to go over the market value of the property and show that you have skin in the game or compensate for the skin like a pledge of other assets.

If you have a property to move leave a brochure box that talks minimally about the property that it is left at, always be sure to leave out pertinent info like price, sq.ft., or bed/baths.

Another issue is zoning as a special use permit may be required, having special needs or more than 3 unrelated tenants is sometimes an issue.You may also be subject to inspections and ADA requirements, hard surface floors wider doors, etc. it's no walk in the park.After you get the permits and modify the place, you will get higher than market rents (due to mods) but you're also pretty well locked in to renting to that NP/agency, can't really take them to the cleaners as they can move on leaving you with a harder to rent dwelling too.Insurance will be more and you better keep the place up in tip top shape.

The HML will want some skin, plus you'll likely need cash to cover the first round of rehab, pay interest during the loan term, maybe pay points up front, cover utilities and insurance until the property is sold, and possibly cover rehab cost overruns.

The reasons I prefer individuals are:- I usually have their cell phone number, so much easier to get a hold of then trying to call an office line and leaving a voicemail- Simple statements, usually in Word or Excel and just simply say the income and expenses and total deposited- Way less players in the game, meaning the one guy handles a whole situation.

I'd just reiterate the 30 day notice requirement (30 days before end of the month when they're moving out, not 30 days at any time) and tell them to let me know when they're leaving.