Has anybody ever heard of something like this, he also said it is a 50 year loan that can be paid off much sooner he was describing paying more every month, the extra payment after three years we can either have that money back or we can use it to pay the loan down and he was explaining the resin they do this is to keep money in the account like this because they want to make sure the loan payment can get made in order to make this a  very good performing note that they can sell if they want to.

Now here is where It gets interesting:All three properties were given to me by my grandfather..

Two years ago I purchased three properties in Florida all totaling about $110,000 including rehab costs, it has taken me two years to pay off all of that debt I borrowed money to make these investments of course (using a hard money lender).

As of now, I owe $70,000 plus a $43,000 HELOC on my primary.I owe $52,000 plus a $50,000 HELOC on rental #1I owe $70,000 on rental #2 and have a $76,000 untapped HELOC.I owe $90,000 on rental #3 without a HELOC.I owe $96,000 on rental #4 that i have a lease option due in 1.3 years at $165,000.I will acquire rental #5 within the next three weeks.

As of now, I owe $70,000 plus a $43,000 HELOC on my primary.I owe $52,000 plus a $50,000 HELOC on rental #1I owe $70,000 on rental #2 and have a $76,000 untapped HELOC.I owe $90,000 on rental #3 without a HELOC.I owe $96,000 on rental #4 that I have a lease option due in 1.3 years at $165,000.I will acquire rental #5 within the next three weeks.

I have called three major insurance providers and each has an endorsement / rider for sinkhole damage for owner occupied houses, but none of them offer a similar endorsement for the rental property (DP3, fire, or landlord policy). 

Keep in mind you can change the lease agreement as long as the tenant agrees, even if you are only three months into it. 

This month's meeting was postponed until next week on the 18th because we have a guest speaker, John mccants will be teaching a three day workshop on buying houses at foreclosure auctions starting Thursday February 18th at 6:30 p.m. until about 9 p.m. then on Friday we will be going to the foreclosure auctions at the Spokane courthouse that will run from about 8 am until noon, then the final day is Saturday from 9 a.m. until noon.

I just bought seven of these Tacoma deals in the last three months under $70 k and we'll do the rehab between $15 k and $25 k and so I can tell that in the market right now you can find $100 k and 1.5% rule rentals locally. 

I would divide my money into three categories equally.1) Flips and Urban Townhome/Rowhome/Skinny Mini Development in hot areas and lowest priced areas, but on the development structure so you pay zero for the land and don't finance your soft costs.2) 1.5% to 2% Cash flow rental properties using BRRRR in B class areas.