You fix it up, and rent out one side of it, or take in roommates, and you essentially live for free, then you buy your next property with an owner-occupied mortgage, and so on, and so on, every couple of years or so.  

This turns into a very useful thread for newbies while interesting the Pros by turning the thread into essentially a game of trivia.Just wondering if we could start one up and maybe sticky it to the top of the Beginner category.Sam Harris

It is a type of FHA loan and essentially follows the same guidelines.

Given a 230,000 $ mortgage at a 25-yr amortization, the corresponding "minimum"/default bi-weekly payments were: $637.35 (BoC 5-yr: 5.34%); $529.02 (5-yr fixed @3.49%); and $480.56 (5-yr variable @2.6%).We did our purchase analysis at the BoC reference rate, and placed a 5-yr variable rate mortgage with our payment set at $630.56 (essentially the same as the 5-yr BoC reference rate).  

That's essentially what would be happening, especially given that Terry has no obligation to buy the property from Jay (i.e., no obligation to pay any interest).

They would accomplish the same thing, essentially.

A few others that are essential to me are:1. by Frank Gallinelli-what ever investor needs to know about cash flow2.

I'm working in the Jacksonville (FL) market, so someone in the proximity to Duval/Clay Counties would be preferable, but not absolutely essential so long as they are familiar with Florida legislation.Any recommendations would be most welcome.Thanks

This is essentially your profit, if you owned the property free and clear. 

Hello:A little crash course on risk. essentially a risk free longer term say 30 year govt bond is about 3 percent, if they make even a 30 year cd it would be the same.