So, at least in this one case, I was able to go MUCH lower than the approved price and still got the deal.That is amazing, I had no idea there was that much wiggle room with the banks (although perhaps this case was the exception rather than the rule?)

Here's some numbers:GOI (minus vacancy) = 21240NOI = 10620 (50% rule), however, because everything is new, NOI could actually be near 70% with no cap expenditures in the near future.Cap rate = 11% minimumcash on cash return = 25%I have a side deal with my brother/partner where he would be property manager but would forgo any payment in lieu of earning equity in the property - I can explain more if anyone is interested.

The usual rule is "first in time, first in line".

To the first question regarding profits, it is regarded as Business income subject to self employment taxes.To the second question on short term capital gains - Yes, if the business is a pass through entity, then it follows the same rules as our individual tax return rules.

So I personally would not get involed in a multiplex unless each unit was meeting the 2% rule.

One problem I am seeing is that there is no way to reconcile the prices in the area with some of the rules of thumb used on BP (i.e. 50% and 2%).I'm very comfortable with the analysis of potential investments, but I will need some help with the expense data.

Well I wish you would have posted here BEFORE closing them out.Length of credit history in good standing DOES affect your credit scores.If you have other credit that has a long history it shouldn't affect you that much.If however closing the 3 credit cards with 7 years of history you know only have a few credit lines with only 1 year or 2 of being open that is not great.In the end it shouldn't hurt you too much.When they made the new credit card rules last year or was it the year before credit card companies raised interest rates and annual fees from no fees.So what happened is the great credit people lost benefits because Obama wanted people with bad credit to not be taken advantage of.The credit companies simply restructured to make the same money.So A law passed that had good intentions but was misguided.The government believes when they pass a law people or companies will just take the loss but it never happens.So in the end these laws are just spinning wheels and not doing anything.I know many people who have closed their accounts once interest rates go up or annual fees are imposed.The downside is people want to maintain credit but some credit companies have been closing accounts if you don't use enough and they make a certain amount of interest off of you.It is getting rediculuos.

I know everything depends on personal circumstances but let's say the property is worth 104k...90% financed....insofar as liability and hazard insurance what is a good rule of thumb?

Fourthly, as pointed out previously, many of these "turn-key" rentals appear to have higher-than-market rents upon sale, and from what I can tell it's because the sellers grab the first (unscreened, unqualified) person they can who will sign a lease at that amount.

Okay hard money pros...Scenario:-A fully licensed real estate (deeds...not money) broker in California wishes to make hard money loans at very high interest rates in trade for aggregating money sources for fix-and-flippers and providing the fund apparatus where they can pool investors' money-The broker/lender inserts a choice of law provision in the contract stating that the laws of California apply-The broker/lender loans on projects in other statesI read in other posts that people have received advice from attorneys stating that the choice of law provision somehow "imports" the rules of Cali and allows one to lend at usurious rates.