Basically I am borrowing 100% of the purchase price but giving them $6500 in an escrow account to draw against to do the repairs.

Perhaps it is my novice perspective that draws me to do this for "fun."

Not that I'm necessarily going to ditch the day job once we've got enough coming in from our investments, but once the info is out there people will draw their own conclusions.

jasmine, as i said in another post, first national, first federal, and new dominion are all local banks that are somewhat investor friendly....there should be no prepayment penalty..you can get them usually roll the rehab costs into a draw or 2 as long as you put down the 25-30% of purchase and rehab..but it'll take solid credit, good looking tax returns for a year or 2, money in reserves, and time

The fully occupied thing was a big draw for me - the theory being you make the purchase and there's rent coming in from day 1.

One detriment is that it can take weeks for them to draw the check.

We're working that angle knowing my friend will still do the drawings if we need him.

The hope is that I would have equity over time and that I could use that to help finance my subsequent investment purchase.

When I went there were two instructors as a tag team with one class.A draw back to that is that some related materials are complimentary, talking about a survey requirements and enchroachments are easily understood putting it in context with title issues or conveyance.

Make sure the draw never gets ahead of the work.