Though both properties generate positive cash flow (barely) with only 5% down, I paid market value both times and dont want to do that again.

I have been talking with a person that buys notes (non-performing 1st position) and he mentioned a term that I had never heard.

Worth + $ 1M USD, with at least a 70% equity position, receive 3.6% weekly bank endorsed investment incentives of 100% appraised value!!!!!!!

There are good 1st position notes out there and descent seconds to buy for yourself.

I might assume the existing mortgage, but if I could find someone to just lend me 2 million CAD and take first position that would ideal. 2m would be approxmiate 90% LTV.

Your equity position is market value less any liens, so, market value( $ 125,000) - liens ( $ 90,000 ) = $35,000.

I am looking into investing in cash flow positive properties.

I work in a professional position but have always had an interest in building, contracting, flipping, etc.

That's salesmanship.To get some more info on how people's decision making processes are different, I'd recommed reading Positive Personality Profiles by Robert Rohm.Okay on to a couple technical details :D .

Even if i were in a position to have to sell it at say 199k, that is still only 57% ARV.......FIXED...If i sit on this property for 2 years it will probably be worth 300k (but i cant sit on it due to lending restraints)...If i had to sit on it, the house sleeps 10 so in the summer months i could easily get 2000 per week renting it out to vacationers from May to September which would net me 40k per year...So including rehab my total ARV is 46%.