Debt service is higher (with both) which makes it more challenging to make the mortgage and with zero down you have very little incentive (without a full-recourse lone and assets) not to walk away.

I know there are low value asset notes that are pretty cheap to down right cheap.. but in general for anyone to do anything in notes you need a few hundred grand in cash to start.Also with NPN  that's a ton of work.. and there is far more risk than what is talked about or glossed over in most HOW to seminars..

For example, if you are going into LA thinking of buying a cash flowing asset, I think that would be a little too far gone right now (not to say that it is not possible), and if you are looking for cash flow, are you wanting to purchase in an area that you can see, touch and drive the property when you want, or would you want to try long distance investing?  

Thought we were discussing commercial assets, but congrats to you, Gordon!

@Ashly Frasso Commercial loans will largely depend on the performance of the asset, rather than your personal financials. 

Using this approach, keeping withconservative rent growth and vacancy assumptions, and factoring in the fully matured real estate tax amount post-abatement, the Y1 projected cash flow of $570,561 ($670,561adjusted down $100,000 to account for the fully matured RE taxes) would value the asset at roughly $11.4M at a 5% cap - a substantial savings from our purchase price of$9.8M.

Should I set up some sort of LLC to protect my personal assets?

I get why some would say investors are causing the affordability issue, but my guess is it would be a lot more productive if policies/discussions focused on two issues, (i) why haven't wages been increasing as asset prices and rent have gone up the last 10 years and (ii) why isn't there enough of an incentive for investors to build affordable housing.

I am fairly active still and make it out to the area at least 6 times/year, but I am buying distressed assets.

@Craig Sweeney  That's a very open-ended question depending on your circumstances, other assets, relationship with your sister-in-law, budget, type of property, type of tenants, risk tolerance, etc.