Our LTV is less than 50% ( yes no risk at all for the bank, and we have top credit score.We already paid the appraisal, environment fee, wasted countless hours etc...The texts in LOI: Financial covenants:-- Min DCR based on actual rents for the first trust deed of 1.25:1.00 based on a 25 year amortization by the end of 2018.And in the loan doc---Property is to maintain a 1.25:1.00 Debt Service Coverage Ratio, tested annually.We would not have paid the fee and sign the LOI, had he included the phrase tested annually.Please understand that the loan  will be for 10 years long, and we are very confident that we will always have fund for the monthly mortgage payment.

I have two options in front of me either to obtain a rehab loan, which will cost me $10k for six months ( points, fees, interest) or just finance the entire deal with my own money (cash).The rehab loan will enable me to obtain an additional property, so in six months i'll have two properties ( one with the loan, another with my cash)  but it'll cost me an extra $10k (on top of the regular down-payment which in any case i'll have to lay out) .

Installed new flooring and painted the entire house.

To make it easy, I add additional 1% for PM fees.Long story "long", I use 11% for PM fees :)

I added the numbers up you are better off buying a clean title in good condition property.31K+19K+7K+closing cost, negotiator fee I got close to 60K...… If it was me I pass.

Most of which came from installing HVAC into both units.

FHA 3.5% Sales Price Cash After closing fees $305,000.00 $15,000.00 $430,000.00 $127,000.00 Monthly PITI Average 4 Bedroom Rent Realized Rent Savings 2.5 Years Repair Cost $2,500.00 $2,800.00 $9,000.00 $27,500.00 Total Money Invested (Repair Cost+Downpayment)-Rent Savings ROI: Gains from investment-Cost/Cost $33,500.00 280%

I would call an attorney, pay him his fee, and do what he recommends.

When we rehabbed his studio the carpet install guys insisted we needed a hazmat cleanup team & literally walked off the job.We got the place & within 30 months (& after a LOT of work & some structural redesign) we got the property approved as a legal 6-plex & the rents are currently $4900/month.

A real estate agent can also review to let you know what is customary in your area- IE who pays for title insurance, escrow fees, etc.