I was told that if this is done you cannot use the traditional perks that comes with RE investing IE.

While if on a Roth IRA they get taxed now but then grow tax free and when you pull them out, you "should" be in a higher tax bracket and will not have to pay taxes on them"Argeed Luis, a Roth is a great savings vehicle IMO more so then the traditional IRA.

I don't mean to hijack Taylor's thread here, but I believe I'm still on topic...does the 70% rule assume you are financing traditionally or with hard money?

Traditional/Bank5.

Traditionally only a small percent of people contribute to a forum, occasionally coming out of their shell.

If you’re buying traditionally your lender will handle setting up the closing. 95K on a 120K ARV doesn’t sound like a great deal to me.

I think all of this is not in his world and not part of what he knows.He can continue to help us with our ROTHs/IRAs and other traditional investments and I will handle the rest ;)And just so everyone knows- the reason we hired him was because I I don't have time to research our investments and where to put X amount of dollars and move this, save this...yada yadda.

Unless you have a lot of assets, and your going to buy and hold single family, going the traditional mortgage route in your personal name is probable the way to go.You can have up to 10 traditional mortgages, the first four are relatively easy, 5-10 have more strict underwritting (720 mid FICO, 6 month reserves for all rental property, etc)Go meet and make friends with a good mortgage broker (or 2 or 3) have them go over the potential deals.I would recommend doing that for your first 10 single family (everyone i different but just spend a couple of hundred dollar for a $2-$3 M umbrella policy.After you get to that point you will put properties into LLC and get commercial financing, but as Jon pointed out, isn't as good as traditional mortgages (rates will be a little higher and you won't lock them in for anything close to 30 years)For multi-family forget everything I just said, it a different world

Would you end up going with traditional financing to have the property end up cashflowing?

This particular property didn't fall into traditional parameters for analyzing.