Are there any tax implications to the borrower?

Over-financing can be an issue when too much money is borrowed (the interest rate and length of the mortgage are factors).Warren Buffett refers to free cashflow as owner earnings, which is money you can safely take out of the business without jeopardizing the business.

There are some great choices in Rochester.Are you going to end up owning a percentage of the properties he already has? 

This would in concept increase your CoC from 12% to potentially higher given the rate to borrow is in the 5's which translates into a 6.80% mortgage constant meaning you have to earn a min cap of 6.8% (based on 80k value) to break even.

Something to keep in mind is that we are in late stages of the cycle, so you may only want to borrow 70 percent of ltv.   

So I wouldn't pursue that.I also don't see how it'd be a good BRRRR because it sounds like you'd need to borrow all of the money for the purchase, down payment and rehab costs. 

Hi Pavel,Great choice!  

I don't know if you own a home or not, but I would say putting the money down and paying off debt on your personal home could be a smart choice. 

PASSIVE real estate investing and once you make that choice, then decide which of the multiple paths down those tracks to take. 

I borrowed form my 401k for a down payment.