Credit of the borrower.4.

The vast majority of rentals will not cash flow properly when you borrow 80% of the market value, let alone buying the property with hard money.

Cash based business person who never borrows money.

Assuming no change the NOI becomes critical.A lender assumes that the borrower is less important than the property to service the debt.

Hence you have more flexibility than they have.As you have all cash assume you should get a better price than someone who is going to need to borrow the funds.

Why, banks want real skin in the game, real equity for a 75% LTV loan, to date, a soft second filled the gap allowing a borrower to get in under the rules, but was more likely to walk away.

I am a little leery of borrowing money ...

At a purchase price of $300K and $90K down, you'll be borrowing $210K.So, here is how this deal looks:Gross Rents: $2,000Operating Expenses: $1,000NOI: $1,000Mortgage ($210K, 7.5%, 30 yr): $1,468Monthly Cash Flow: $468 LOSSSo, you're putting $90K of your own money into a deal that will lose nearly $6,000 per year!

Lender is high bidder at auction and bids minimum bid so no money isowed to Borrower.

Perhaps i can attempt a minor flip...that way i can gain some capital as well as repay the money borrowed...freeing myself of a guilty conscious.Thanks for putting things in perspective for me wheatie.