You can really do this two ways:option 1Show the loaned money in your bank balance (when you send through a bank statement I imagine this will already be there).Show the the loan as a liability to yourself.Show your 401(k) balance without the loan.option 2Subtract the loaned money from your bank balanceDon't show the loan as a liabilityInclude the loan balance in your 401(k) balanceEither way, your total assets (the bit the bank actually cares about) will add up to the same thing.

If you can find a 3 or 4 unit multi where you can qualify for and afford the 3.5% down, you could actually be putting a some money in your pocket every month.Hopefully this is enough to give you an idea of what you need to properly assess this deal.NOTE: This is a formula only.

Keep in mind many of those OK deals on the MLS can be home runs when negotiated properly.

In my current line of work(DirecTv), I am constantly fighting off the state trying to classify subcontractors as employees, the subsequent fines and taxes, and subs refusal to do proper work and follow the contract guidelines.

If you want to be a landlord I suggest you use more of that cash flow and buy down your easy purchases, you need to balance the future amount to finance at a higher rate (like 8 to 10%) so your payment obligation won't shoot up on you.

just make sure you tell your banker everything so he can properly guide you.most deals I'm seeing done with financing are short-sales (as of 1 year)... this really depends on your area though.

Without proper reserves to handle a big-ticket item, an investor is asking for Murphy's Law to kick in.

I see great potential in rehabbing as well as buying and holding in my area but i do not want to rush into anything without properly acquiring proper knowledge.

There are various ways to reimburse someone for helping you out, but you've gotta make sure you're not treading into territory where you're acting as licensed brokers or salespeople, whose actions are governed by state and federal laws - hence, the reason you can't act like one without being properly licensed.

Perhaps another option would be to go for a conventional loan for the loan contract balance.