He has been through about 4 cycles he said and he said each time for commercial multifamily was the leading drive on the rebound.If you look at cycles they all have similarities and some differences.Recognizing these patterns leads to the best portfolio and the best returns versus risk.What Rich said holds true in that you avoid the herd mentality.People that do not invest prudently do good with some properties and then the others bring them down to a negative to flat position for years before you can recover.Some of these syndicated pools of investors look at the big project as a smaller risk.That is fine if the gamble is made based on the funds entered is only a small percentage of their total worth.Example if the have 2 million liquid and want to spend 100k for an interest in a property that could throw off very high returns than they are still safe versus their overall portfolio.I can tell you that buyers think "I am buying so low there is NO WAY I can lose on this!".

Yes - if you secured the loan by telling the bank this will be your 2nd home, then that is how the bank expects you to use it.

Am closing on an REO from BofA next week and in contract on another property that is a short sale own by BofA.My question is do you know if BofA have any rules or limit to the number of properties one can purchase from them within a giving time and the reason am asking is because they are the only bank that ask for social security number when you make offers.

In my experience, ridiculous bids come from one of two kinds of contractors. 1) Overloaded: They're very busy and/or don't like something about your project, or...2) Shady: Predatory contractors that throw out lots of outrageous bids and wait for someone to bite.

So who's out there that would like to connect and throw ideas around with?

So I wouldn't use a forms company to secure my legal right to the property.

George,First the number 550 a month in rent.Let's break it down.For the area does the 550 offer first months rent free or half off or a waiver of security deposit.If that is what is a happening with competition for the area then rent is not 550.Let's say it is 500.Now look at the 500 per month.You will need to deduct your rents for crappy stairs to walk up,a sloped parking lot,no amenities,if you do not have a washer/dryer place for hook up etc.Your rate will now be considerably less than the 500 others are charging.If I am a tenant looking for a place I want the level lot,ease of walking into my unit,do not like tenants above me,ample and level parking,amenities,place to do my clothes.Buyers on resale will more likely want a 12% cap.I look at a lot of apartments for clients.This one to me is a pass.It has too many negatives going for it that make it hard to rent and retain long term tenants.Again that can be solved by a below market rent rate to make up for the problems it will still have after rehab.

If you have that sale price (or value based on rents) deduct the costs of improvements, holding expenses and costs of acquiring the property, throw in you required return and you'll have the value to you for that property.

Don't throw the baby out with the bathwater here.You had a problem - but fortunately a rare one.

(*I understand that I am taking a risk by owner occupying to secure the loan and then quickly leaving for another building and I can deal with that*) I am also planning on using a HELOC that I have obtained from my primary residence to finance some of the down payment.Any advice or thoughts would be greatly appreciated.