I would want to know what the rent will look like compared with the total debt you'll have on the property.

I totally glossed over the fact you're paying retail.

The total loan needed would be about $190,000.Can anyone suggest a good broker in this area?

. $212,000 loan @80%30 year fixed, fully amortizing using our Paper Saver process - like stated income but no charge for it6.375% would cost you 1.00% discount point - 6.532% APR$819.80 total lender feesIf you consider an 80/5/15 - where you put 15% down instead of 20%$212,000 loan @80%30 year fixed, fully amortizing6.375% would cost you 1.00% discount point - 6.532%APR$819.80 total lender fees2nd lien of $13,2508.375% would cost you 1.00% discount point ($132.50) 8.513%APRno extra lender fees on the second.So you save $13,250 and have an additional monthly payment on that second of $100.71 per month which means you break even in almost 11 years.

Im guessing totally seperate from the actual purchase contract.

In so doing, they can cover 100% of the total project costs including, in most cases, monies the developer has already expensed for soft costs, pre-development, etc.

All you need is for the total of both the first mortgage and the second mortgage to total 100% of the purchase price.

the funny thing is, you'll read these replies, from total strangers and if you get into real estate investing in more depth - you'll increase your knowledge base - TEN FOLD.then you'll look back on this and the next 50 posts or so and say, "wow, i was really clueless."

Are they a total scam or do some legitimate ones actually exist?

Assuming you don't go up in total amount borrowed (or total loan length) from house to house, and assuming you are making a true profit each time, and assuming you apply that profit to the mortgage, then yes, you will pay off your house more quickly.For this to work, though, the profit needs to be from your improvements (repairs) and not appreciation.