A true MLO won't kick off capital gains nor depreciation recapture since it is not a sale.My strategy currently is to use a minimal down MLO where I pay all MLO closing costs and make the term of the MLO enough to cover depreciation recapture plus a bit extra (3-5 years) Then the option would be a Seller-carry deal that is 100% financed except closing costs.

It's also a great way to build trust and relationships in the community that can carry you a long way.

Especially drywall, it's not that fun carrying 60 sheets into a basement, then hanging and finishing all of it.

If you can buy a mobile home  park in the area for 11% now, it makes no sense to build one, pay all the carrying charges, rent it out and only get 11% if you could just buy an existing park and get the same cash flow.

Those are carrying cost you, the investor assume but are never aware of until they start happening. 

Thank you Natalie -  so if I spend 75% of loan money renovating property "A" (the one that carries the new loan)  and 25% repairing  2nd property "B"  and the annual interest is $8,000,  I allocate the interest expense 75% to "A" and 25% to "B"  ---- rather than deduct 100% on property "A"

I knew that we could in theory carry both the mortgage payment on Fairhope #3 and the rent on Fairhope #2 if we had to, but I was hoping that once we moved into Fairhope #3, Fairhope #2 could be released to a new tenant rather quickly.

Last one to remember for an inexperienced auction property buyer is all the "fees" which many people don't accurately calculate or understand.Last thing I tell people is don't get carried away on auction prices and to make sure you understand the value of the property (including pre and post acquisition costs) against market value.  

And those days I didn't carry my my book or while waiting on line at grocery store or a passenger in car I just took practice exams on my phone again reviewing ones I got wrong.

Borrower carrys opened ended liability for borrower costs related to lender securitization of loan2.