Sam can't get a loan (for various reasons), so Mike agrees to a "Wrap".

******************************Current Loan Bal - $315kMortgage Pmt - $1344/mthProp Taxes - $840/mthInsurance estimate - $300/mthTotal estimated PITI = $2,483/mthHOA - $124/mthTotal Monthly Expense (not incl, Vac & Coll, Mgt, or Capex) - $2,607************Estimated Monthly Rental Income = $4,000 to $4,300Estimated Net Income - $1,393 to $1,693  ($4,000 - $2,607, etc)Annualized Net Income = $16,711 to $20,311***********Estimated Current Sales Price = $830,000Est sales cost of 6.5% (5% commissions + 1-1.5% other costs) = $53,950Est Sale Net Proceeds - $776,050Est Net Cash (after loan payoff) = $461,050 ($776k - $315k)******************************Est % ReturnsAs a Rentalbetween 3.62% to 4.41% ($16,711 net inc/$461k net cash from sale, etc)Again, this does NOT include vacancy, collections, management, or capex, etc.

Loan Buy Down: Some calculate this as part of their "cash flow."

Once the loan is due, lenders can really charge whatever they want for an extension.

I would look into house-hacking with a 5% down CHAMP loan or a 3.5% down FHA loan.

Many hard money lenders are hesitant to provide loans solely for land acquisition, and conventional loans have been somewhat limiting, especially for land deals.What is best strategies for raising private funds.

You create a loan from your Roth IRA for say 20,000. 

But the ones that did had very good W 2 so they had the cash and income to qualify for loans.

IMOHML also better be careful about calling a residential loan a commercial loan as well.

I'm wondering how private lenders get taxed on their earned interest as they loan money to RE investors.