Alternately, you could look at doing a conversion of tax-deferred funds to Roth status if you want to have more capital in that form.  

ARV is same as purchase price as per final appraisal.Loan status = approved for a non recourse loan.PITI = 765 per mo HOA = 35 per month Property will have a guaranteed rent for 12 months of 1175 (similar properties renting for 1100-1200 in the area )After capex, future repairs deduction I will be cash flowing 140-160Market is growing fast.Should I close on this dealThanks again as always 

However, he is in quite poor physical health for a 60 year old man (very overweight), so I've emphasized to him that this area is even more important than having cashflow.

I been doing Bank owned pre list for 9 years, they have a process they go through after they get possession.Finish all the foreclosure paperLien checksValuationfinally Listing, auction, or portfolio packageThe bank is in no hurry and offering before the list it is a 50/50 chance as they are sometime very unrealistic about value.The best way to get in early is, If you go by the property very early they post a paper taped in the window or on the door that gives legal notice of the status.  

I only mentioned that it was a B property because I wanted to clarify it was not a complete disaster area / and not a brand new top of the line home)A ) -Newer construction or recently remodeled- Top amenities- High-income / status tenants- low vacancy rates- more luxury life style- very little or no deferred maintenance issuesB) - Older properties / Not recently remodeled-  Few or no added amenities- middle class tenants- decent condition  (nothing to write home about tho)- Value add investment opportunity- some deferred maintenance issues, but generally well maintainedC) - Older properties or desperately in need of remodeling -  needs infostructure improvements- lower income tenants- less desirable location Once again this is just my take on it, everyone has different opinion, and im sure mine will change over time. 

He can get sued for fraud if he knowingly covers a health or safety issue....not sure what the laws are in Illinois, but Alabama is a buyer beware state, so it may be hard to actually win - but sounds like the buyers would have a pretty good case.

It's more of a crystal ball thing than checking off the qualification check list that RMLOs are trained to do.RMLOs can't do third party originastions due to their employment status of having to operate under a registered lender, a brokerage, bank, etc.

The maximum mortgage amount for 3-4 unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.

They have sent me a "Sellers Affadavit of Non Foreign Status" form that says they are exempt from FIRPTA for federal reasons.

They (through their agent) have sent me a "Sellers Affadavit of Non Foreign Status" form that says they are exempt from FIRPTA for federal reasons.