The title company then sends checks out to everyone involved, including the seller's existing lender.2.

So, here's the breakdown:Owner hold existing debt but let's assume its free & clear for this example.Sale price: $130,000Repair Costs: 50,000Difference: 80,000That's 40,000 a piece and for you that's a gross return of 80%.

There should be no regulation on the matter.The fact that there is regulation cause me to start this thread and make, as I stated, an "overly simple" example to illustrate my question.

I think that should more than cover you.If it doesn't, then you would pretty much have to remove everything that exists in a house in order to prevent yourself from being "at risk".

Due diligence by the original lender would have to be non existent, maybe a lender who was family and trusted you would loan on blind faith, but I never would.Just my opinion.Rick

No extra paperwork is needed, it is assumed that the new owner inherits existing tenants/leases.

That is essentially what you would be doing by refinancing the existing residence.In addition, at your option, you could turn that extra cash flow into the property paying it off even sooner than you can right now at the same monthly break-even to loss situation.4 points seems very high.

Forclosure simply doesn't exists, since there was only 9 forclosure last year....A simple, basic SFR is over 2,000,000 USD and a good property in a good location is over 10,000,000 USD so It's completly out of reach for me and I'm looking at condos.For condos, the median price is 10000 CHF per square meter, to translate it's 1000 USD per sq ft and it's a median price, condos near the lake or in the city center are two or tree times more expensive.With theses prices, the 2% rules is completly impossible to obtain since the rent for a small condo of 300 sq ft is around 1500 USD (0.5%) per month and a 1000 sq ft condo is arround 4000 USD per month (0.4%).The only good thing is the interest rate who is incredibly low at 2.79% for 15 years for a fixed rate for exemple, another "strange" local particularity is that in Switzerland we don't really pay our mortages, ever : for fiscal reasons it's a lot more interesting to have a debt on our house so we pay a small interest rate and have a big tax reduction.Most of the experts agree that Geneva face a housing bubble, the problem is that 10 years ago they where saying that too and prices have rised by 100% since... and there is still a severe house shortage and very low credits costs so I don't really see how things could really change...I tried to look in other part of Switzerland, the price is lower but the rent goes down too so the ratio isn't really better...One possiblity would be to invest in France since the border is so close and the price theres are 40% lower and there is a lot of government helps for investors like 19% of your money back on a new house purchase if you keep a gov fixed (read low) rent for 9 years.What would you do in my situation ?

There are existing threads for you to discuss your views on guns and your personal disagreements.

Many mortgages are private rather than institutional, many liens other than mortgages can exist.