If you're doing a side deal and borrowing the funds for the down payment and then paying investors back, they're really going to frown upon it (they don't want any of the down payment to be borrowed, and will question any large deposits coming into your account).Also with a multi unit that I assume you'll be renting out, make sure you have cash reserves for the unexpected (evictions, damage, code changes, etc).Good luck!

We have some concerns with considering expenses in our model, specifically with replacement reserves in comparison to general maintenance, how much to set aside for reserves, etc.Thank you!

Hi Gabe - Banks are usually a little more conservative, especially on construction loans so without a big track record or a strong credit score/reserves it may be difficult.

I think insurance is around 220/month.I did the numbers and cash flow is around 130/month considering 10% reserved each for capex, vacancy, and maintenance.

Also many banks require that you have 6 months of emergency reserves (PITI or principle, interest, taxes, and insurance) for each property you own, outside of your down payment and closing costs.

Just raise his rent to that of the other units, and I would also ask him to sign something confirming that he has refused the renovations that you offered but is still wanting to stay on at the increased rent.

I also offered to call the bank together if they wanted confirmation because I understood their concern.Sounds like different kinds of 203(k) loans out there so let the LO's know what you intend to do so they can suggest the options available to you.

Buy it in its current condition and if and when tenant vacates, we have a rainy day fund to make those repairs without it coming out of our deferred maintenance reserves.

I give investors bidding insight and let them know how close they are to seller's reserve prices.

also, to confirm, do you hold those 2 rentals in your personal name or a business name....