Honestly, I'm not sure how people really make it out here unless you bought real estate (cashflow be damned) or lucked out on an IPO.

(although if you read it as a hopped up Chris Farley it's pretty damn funny.)

There is an old rule in finance, never finance a long term asset with short term financing.Lines of credit, or HELOCs are short term financing products, interest can adjust quickly, they can all be terminated at-will by the lender, they can be called due, many have terms that relate to your outstanding credit balances, as you take on more credit they see a higher risk and can increase your rate, cut you off or call it payable.Another issue with small investors, a HELOC or LOC that you draw funds on within 6 months can put you in a position of being underwritten as a cash out refinance instead of a straight refinance on a no cash out basis.

I've saved and bought things in cash.With that said, obtaining financing for a flip project is damn near terrorizing me - though I know it's part of the process and has to be done.Since I am brand new to this area, I still have a virtually non-existent network beyond the few people I've connected with here on BP and those involved from other places.Question 1: While I understand that any lender - primarily HML, is looking at multiple factors when deciding on whether or not to approve a loan...

My current condominium has an outstanding mortgage of $190,000 and I collect $1,500 a month in rent from my friends with all bills inclusive.

One thing's for certain: that particular neighborhood will be much safer for a while.And I'll bet EVERY LAW-ABIDING CITIZEN in that neighborhood is DAMN GLAD for what that landlord did!!!

That is pretty damn scary.

Refuse to classify it as a failure, follow you're heart, catch your breath and come up swinging.Key ingredients to success are free.Hard workBelieve in yourselfpreparationfocus on key issuesbe decisiveplan and organizetake immediate action to solve the problemcounter negative thoughts with positive onesout work, out think, out tough the competition.visualize successshare concerns with wifecount your blessingsexercise your mind, body and spiritfeed your mind, body and spiritseek advice from outstanding peopleconsult skilled advisorsshare concerns with a close frienduse mental toughnessread about successful peoplenetwork with successful peoplehave strong faithpray....excerpt from one of the books I'm just about finished reading.

These low end properties come with the most credit challenged people who typically live paycheck to paycheck, and don't give a damn about the property, and we get the brunt of that!!!

@Joel F. you are correct that security deposits are not considered rental income but what you fail to understand is that once that security deposit became your property through tenant default then that money gets posted against outstanding charges which include rent.