As Bill Gulley has mentioned, HUD uses 30% of income for the contribution from their Section 8 tenants; that is pretty close to 3x so we use 3x to keep the math simpler.

Here are the numbers that we generated: Prop ins annual - $1,000 Prop Tax annual - $256 Down payment - 20% Interest rate - 4.75% W/ seller contribution of 4.5%The rent to generate that cash flow would have to be $950 without at PM.

Usually the fee or pay down will be significantly more than just the contribution made by that collateral.

You also can contribute more, potentially.

The tenant pays the 300 in interest and contributes to paying down the note.

I look forward to learning, asking LOTS of questions, contributing to the forums and meeting like minded people along the way.Cheers :)

I have a better understanding on how to structure the next deal and am just brainstorming how to put this deal together the way the pro's(you and others that have contributed on BP) are suggesting.

We look forward to your contributions.

Good Day All, I just want to start off by saying I'm extremely happy to be a part of the Bigger Pockets community, and I'm very anxious to start interacting with the wide range of different investors that contribute so much knowledge to the site.

So the ambiguous part is we need to wire transfer money (our contribution to this LLC) to the bank directly in the name of the LLC, however the LLC hasn't been solidified yet.