So a single unit rented could possibly show postitive flow, but a fully rented duplex would definilty be positive.

I am usually buying cash, sometimes paying cash for rehab then doing a refi once I get a renter for positive cashflow then move on to the next project.

I am from Canada so I obviously put him on my list of possible lenders but at the moment I am not in a position to travel for two or three months long distance to do a flip - all though I am tempted to try it at least once in the not so distant future.James Smith is great to listen too, but I find that he isnt any different than any of the other seminar gurus.

And what is so hard to understand were the economic indicators that were released yesterday that were so positive.

If the payment was expressed as a positive number, you would need to add the -.

I've had lenders in a third position refuse to take anything when the first is foreclosing (the third lost everything) and I've had first's that were owed $80k and took $5k.

According to OFHEO's latest House Price Index report, CA is generally in a very bad position.

How do I do these things in order to make certain that I dont put myself in a terrible position?

The details of the terms are up to you and the owner, so pretty much everything you bring up is up to the two of you.The bank will want to be in first position.

If this works out, I would be in a position where I probably would not want to sell the note.