You get 13%.Increased Scale, Less Risk – You’re investing in a former hotel with 23 upscale units and a view of the Cali River.

Then within 1 to 2 years move out by buying another place rent your old place out you lived in and continue to increase your positive cash flow.Remember, cash flow is king!!

I know that increases the payment and adds PMI but I think we could find a program with a reduced or zero PMI option. this would keep more money in our pockets for other investments or rehab work.

It is a Fannie Mae ARM with the first year being X and the remaining term of the loan increasing and becoming fixed by 1% the following year for the remainder of the 30 year loan.

What kind of factors would be put into the consideration of how much to charge?

Some of that would also be used to pay the ~$1500 in closing costs on this new loan.I understand that this increasing how much we are leveraged greatly(by 34k). 

Your number one priority should be increasing your income.

When you rely on outside help that may or may not exist, you increase liability.

Also the property taxes in El Paso increased by almost $400 and that’s another reason that I’m paying too much.

@David FriedmanYes you are correct, it is almost like a reverse mortgage and yes there is a huge element of speculation to assuming a 2% increase in property value for the next 30 years (although it is in Irvine near the University!).