Never own a rental where you have to carry a sidearm to collect rent.2.

If you are going to borrow funds to acquire notes, you'll need most of your cash on hand as reserves to carry the obligations you have vs. the income created from the notes (principal, interest, late fees and other assessments, if any).

If it is big and that interest rate risk is too high you may consider refinancing to a FRM and carrying the next loan as an ARM for a small property you acquire.If there are flaws in this logic I would love to hear about them.

But, the smell carries, right?

However, the way CA views canceling a contract, is that while technically either side can cancel unilaterally, the cancellation carries no weight and cannot be executed by escrow unless it is bilateral.

If I were you, I would get trained and licensed and start carrying.

Transactional funding, if done properly carries NO RISK, well, not a lending risk, but a depository risk.

We attempt to sell the property as quickly as possible as carrying costs and advertising cost are signigicant.

I want it to encompass a variety of RE situations, but not using the "Real Estate" words as that seems to carry a bit of a used car salesmen feel for some reason.

So, if you're subject to passive loss limitations, you wouldn't have to carry losses from your vacation rental property forward each year. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Passive-Activity-Loss-ATG----Chapter-2,-Rental-Losses