So, I guess I'm not necessarily saying do it or don't do it about the BnB - just make sure you arm yourself with knowledge and take it slow.

Any opinions on Luis's idea of negotiating an ARM on their terms to eventually get to the 9% they want?

Hi there,Using round numbers for a newer single family house that you will use as a rental:Down Payment: 20%-25%Closing: ~5%Safety Net: ~$15,000 (I let this fall to around $10K after it is rented and things are a little stabilized)I'm sure someone more smart than me may tweak these, but that's what I work from.

I think you all should arm wrestle...HA!!

Putting the tenants personal safety concerns aside, those French doors are just too easy to break into and unlock the door, especially if you've got one on the side door, where it may be less visible from the street.I'd never have a tenant in an urban neighborhood with a french style doors for entry.

Keeping things arms-length is the rule with self-directed IRAs.

Sooo you might be spending tooooo much time on the wrong deal.In the end the BK trustee needs to sign off on "the deal" to ensure that the transaction is arms length and "fair market value".

The other point of something happening and being able to just rent it out with the conventional loan vs. the short term consequences of a HML is another huge perk/safety net.

First home: wedding gift, free clear...opened line of credit (Rental)First flip: 100% family, promissory note (rent/sold)Live in flip: conventional 80%(sold)First commercial: 5 yr ARM (rent/selling)Current home: conventional 80%2nd commercial: home equity from first home(rent)2nd flip: investors project, investors $ cash (work in progress)

I had another technician try to "take things apart" to see what the problem was, and he ended up making it worse, the furnace then wouldn't start at all and it was the first freezing night of the season, and it took an arm and a leg to get him to come back and at least get it to where it was (this was a licensed company in the area as well).So if someone can look at it and say, "This is your problem, and it will cost X to fix it," and they would stand by their work, sure I'd fix it.