Just for some info, we have to do DSCR loans at this point in our life and we will not be selling in the next 5 years.

In the process of BUYING a PURE Option to buy a SFH subject to an existing loan (at a lower fixed long term interest rate)Let say the OPTION "Strike price" to BUY the property IF or WHEN the OPTION is EXERCISED is $300K The seller wants $60K to sell us the OPTION.

Right now Im at the engineering phase and subdividing phase.

*This post does not create a CPA-client relationship.

.- Assume - second position HELOAN on primary for full $300k (lots of equity) for 15 years at 9% = $3,050 payment per month.

At some point they are going to do an inspection.

Based on the 1% rule, this doesn’t seem to make sense.However, the city and area we live in retain property value because of the schools, community, and location.

What made you interested in investing in this type of deal?

Usually people do it at 3 properties or more but depends on your goals.

I also dont have enough cash on hand to hire a lawyer to go after the contractor at this time (I doubt she has the assests anyway).