He funds the loan and you agree to a price that varies based on the performance of the bar.

I just can't imagine that the lender would just let that kind of loss go, but I understand well that they are now bogged down w/ many non-performing assets that they need to get off the books.

However, after having thought about this, I do have an opinion that I haven't really seen discussed here and that is the thought that if you're investing in SFR's, there might not be anything wrong with having a couple properties that don't perform so well *if* you have evidence that they are in an appreciating market.

I wouldn't even CONSIDER deal number 2 unless the purchase price was at or below $57,500.Of course, you'd still have to perform a cash flow analysis using real world numbers (with all of the expenses, not just the ones you included).

At the end of my rehab, my bill last month was $49.00 and we'll see how it performs in the winter months.

Note that this is not 2% return on your investment because you are not investing $100,000 (you are only investing your down payment, which is hopefully very small).Thus:GR = DS + E + CGross rent must equal the sum of debt service, expenses, and desired cash flow.GR = DS + .5GR + CThis substitution is possible because E = .5 gross rents, as already defined above..5GR = DS + C.5GR = 1000 + 150GR = 2 * 1150 = 2300Now, all that said, this is largely a useless exercise.

If the MLS stated the the square feet listed is "AS PER PUBLIC RECORD", you probably should have performed your due diligence and found out what it was.Usually during a purchase transaction, an appraisal is performed that will have more accurate sq ft numbers.

You have to be able to perform the work in a timely manner, and do it right or you end up hiring a contractor to fix your fups, at usually twice the price!

Feels like free money...I get paid every 2 weeks whether or not I perform well.If/when my portfolio income becomes double what my salary is, I may decide to go back to a full time self employed status.

Many have decided to not perform the service for all sorts of reasons that I will not go into.