This doesnt really apply to 1-4 unit lending unless if its a local or portfolio lender however mostly applicable to 5+ multi family, commercial, and business lending. 5 C's of lending Character (integrity), Capacity(cash flow or ability to service debt), Collateral (equity in property to secure debt), Capital (networth), and Conditions (economy, and external factors)

Many times folks try to make a NOO a 2nd home designation but when it is too close in geography, like on the same street and does not possess any significant attributes to make it believable, the home will be considered NOO for underwriting.

But many of or much of your core business docs can certainly be used over years of dealings but you do need modifications from time to time.John Chapman is giving good advice, you need to see an accountant starting out, the proper designations for tax purposes is very important. :)

So the renovation and trust factor im not worried about.Im more concerned with the real estate market in Merrillville, my 2 properties there are in good areas, the houses just need extensive rehab work.

We're looking at a property we're thinking about buying that is located in a Flood Hazard area (as designated by FEMA).

And @Wayne Brooks dont get me wrong, all realtors dont do a reckless job regarding low equity and negative equity listings.Short Sale Success is a maybe with the lender, with incredible delays, and the ramifications of doing short sales can be seriously detrimental.BTW, I love CCIM Commercial Realtors, its a demanding designation to earn, and should be sought out doing commercial deals.

Etc etc etc" It felt pretty good yesterday from a new tenant and her answer was location (close to New River), but the second deciding factor was my closets.

I would offer it up as funding for someones "amazing" deal who needed some funding help (I would probably factor it as the total amount 50K would buy me so call it 300K, 400K, what ever).I would charge a handsome lions share, thats about the maximum leverage I can think of..... should earn about 20K-35K if done correctly.

Another factor to always keep in mind: on average, the property management or vacation rental management companies will take 25% to 45% (and sometimes more) of your gross rental income.You may have the option of running your property management yourself, through sites such as VRBO.

From my understanding, you can setup an LLC and designate to have it taxed as an S-Corp to benefit from the tax advantages S-Corps receives.