I am concerned because in case I want to sell the house at some point, I'd like to reduce my capital gains taxes as much as possible.

The current lender I am talking with stated they are only concerned about the income stream of the properties which is encouraging but I want to make sure I am moving in the right direction and taking full advantage of all opportunities because 30yrs fixed at 5% sounds much better than an ARM after 5yrs.Thank you for any feedback, this community is fantastic!

(assume that I'd be able to get qualified for the loan and that it would be "reasonable" to be able to pay back the 40K in the time specified)after re-reading, i assume the investor would need to be a lienholder from the beginner under any circumstance...but is that even possible, or would I have to buy the house "with" the investor, which i'd rather not do...also, do not dwell upon the legal details of the arrangement, i have people that I could do this with on a verbal contract not to mention a seperate written contract that protected their investment+interest in the event I sold the property for a gain...I'm much more concerned about the actual numbers/percentages and how realistic this proposition is from an investment standpoint, not a legal one..

As a wholesaler always remember that all the other party is concerned about is WIIFM (what's in it for me?).

If i were to go this route, my concerns would be the overall cost of purchasing several buildings (cheaper to buy one 16 plex rather than four 4-plexes) the upcoming maintenance costs.

I never liked PMs with similar properties to mine.I was always concerned about the competition.

Andy M, Commercial lenders do care about the income in a property, and if that's the only income you have, that can be documented consistently, they are going to be concerned that the money will go for food instead of their mortgage payment.You're also going to have trouble if you try to do this under residential guidelines, for those same reasons and more.Hard money is not an option for you because 1.

I was over there finishing work on the lower units bathroom and he showed up and asked for the keys because he was concerned his couch cannot fit in the upper unit due to it having an "illegal" door.

If I were to do this, does the financing take into account the value of the business outside the building, or is that a seperate transaction as far as the lender is concerned?

I can understand you concern about having your photograph is some "database."