Just because the bank gets a 75%-90% guarantee on the loan doesn't mean that helps you.

Its $3000 just to sign up, and no guarantee.

The vacancy loss alone not including repairs to get it rerented and no guarantee you would get increased rent has to be factored in.

UGGG.... with 3 children this is less than ideal.But there is no guarantee that the house will actually go to sale on May 11th, because the home owner and his "short sale specialist" are so slimy and unethical they know every trick in the book to postpone the foreclosure date.

Prop 2 is ridiculously low on expenses and even though the current tenant might be great there is no guarantee what will happen in 3 years.Personally, Prop 1 seems like the more flexible, realistic choice unless it needs a lot of work, bad area, or something else that just the numbers don't show.

One lesson learned here is that you probably shouldn't be paying for four appraisals without some guarantee that the loan would be funded or you would be reimbursed at least some of the appraisal fees.On the third appraisal, I probably would have gotten suspicious...

In addition to Paul's comments above (which were right on the mark), you'll also likely be asked for a personal guarantee with any business loan, and your personal financial statement will indicate the expense of the rental without the income, so while your LLC will look good, your personal financial statement will look just the opposite.

@ Will, yes, one can lend money out secured by RE at 10 to 15%, but that 10 to 15% return is far from guaranteed.Even if the underlying RE allegedly has 40% equity, there still is no guarantee.

Did you personally guarantee the sale?

Although each deal is unique, I've been starting to demand a personal guarantees tied to costs that go above and beyond "value adders"