The right contractor makes all the difference.If the property needs corrected health and safety items such as replaced gutters or repaired dry wrought it’s because a trained construction expert or appraiser knows it’s necessary to protect the buyer’s and lender’s interest.It’s no more difficult for the borrower to qualify for a 203k loan either, it’s an FHA loan.Any Realtor who says you can’t use a 203k to buy a short sale is wrong.Like most Realtors, they don’t understand the loan so they stay away from it and tell their clients the same.This is a shame since there are 203k classes out there for Realtors to learn how it works, I teach one.

The lease has to be arms length and not way below market.Example a son is being foreclosed on so he writes a lease 2 months before foreclosure for his mom for 400 a month when going rent is 1,000 for the area.

But I'm concerned that if this Schedule E was audited it might be a problem that the lender is the same party as the renter, so the transaction isn't at arms length even if the rates are reasonable.

You can change it for them once a month for example as part of your inspection.Let them know you are checking the unit monthly for safety issues.

I.e people are willing to accept a negative real return in return for safety (or more correctly, perceived safety).

I used to sit on their safety council as a subcontractor.

Federal Pacific and Zinsco are no longer made, but I think Zinsco might have been bought by Sylvania, then maybe GE.I've never had either of the above fail.Even though neither are not made the US Government could still recall the product if the Consumer Product Safety deemed them hazardous.

Hi Josh,ARM loans can be very dangerous, particularly when investing.

And no conventional 30 yrs, just 5 yr ARM.

If you are not an attorney, don't go there.Assuming you make a loan and you want some equity position, you will need to make the loan to/through a business entity through the capital structure and join the entity for the equity shared, that doesn't mean you must be in title, see your attorney to structure such an arrangement.Another way is for you to earn your equity under seperate agreement to provide some other function at arm's length.