,Most banks want you to have skin in the deal, and most will ask you is the down payment borrowed money, and you don't want to lie that is consider mortgage fraud.

If you talk to the average bank, they generally are not going to know much about MF underwriting.Virtually every lender (commercial, MSE MF, even private lenders) are going to want your "skin" (dollars) in the deal unless this is an astoundingly good deal, you have extensive experience, or can substitute other substantial collateral to bolster the deal.

@Carlos Pringle there are a lot of ways to skin a cat.

@Cyrus SidhwaThere's more than one way to skin a cat.

I'd like to have skin in the game on my first new deals.

And as the former tenant had repeatedly demonstrated that he was, in fact such a person, it was for that reason only that I chose not to continue to do business with him.The opposing attorney belittled and scoffed at my reasons and insisted that I was actually a bigoted bastard discriminating against someone specifically because they were black.I asked the judge: Your Honor; I don't like the way this man acts, it has nothing to do with the color of his skin, he would be just as unpleasant to deal with no matter what color he was.

Off course you have to have thick skin due to most sellers responses and also have to know your market well.

We are far from spendthrifts.I appreciate the feedback, and just so you guys know, I have a thick skin, so continue to be honest.Thanks,Mike

For you, thus means you will have a little more skin in tbe game.  

This savings could translate into a higher return on your time since if you paid back your 49,200 and only have 20k left @12% interest lets say your month cost to hold the property is not substantially less in the absence of obscene closing costs or points.Option B:This may be an investors dream cash back 45k in your hands and a property with no skin in the game "infinite return," assuming you still cash flow with 120k of leverage on the property.A tenant would be paying your mortgage, taxes, insurance, and etc while you've retained the property, received 45k non taxable proceeds from the refinance since the asset has not been sold, and potentially making some income each month if the numbers work.120k @30 year fixed 5.625% is only about 690.79 per month and taxes and insurance I'd wager (depending on state) is probably 130 more.