Depending on how many properties you own you might be up against Fannie/Freddie limits on max # of financed properties being 4.

At the offering price this house seems too risky for the limited return.

I use my HELOC for investments and becuase of my "fear" of the lender reducing the limits, I have kept it maxed out, for the most part, rolling money from one investment to the other rather than paying it down and reducing interest, as that would be a point in which the lender could reduce my limit and I would no longer have that full amount available.

Bearing in mind my limited hands-on knowledge at the moment, I feel that I'm gravitating towards wholesaling and bird dogging right now.

Since its a commercial loan, you will probably be limited to 20 years.

BTW in terms of making investing decisions, the after-tax internal rate of return on real estate is the stochastic to use....not cap rates....it's just a better measure of what your really need to know...."

However, in my search, I have managed to find several lenders willing to service more than 4+ properties to include, but not limited to, the following:WA FederalIcon Residential (5 max)JMAC First Mortgage Corp (10 at this time)Metrolending (5 max)American Sterlings BankAdditionally, there are private lenders w hedge funds that don't have a limit.

I am just trying to be smart about it and increase my cash flow while limiting my time, maintanence, etc...

Well, You now owe them 5K plus interest, plus over the limit fees, (because they will have a monthly fee on top of your finance fees), AND a new APR somewhere around 28.9%.

We are both new to the game, and when I say new I mean really have only limited knowledge.