Figure your PM at 8- 10%, you will have garbage, lawn/ snow maintenance, water sewer, your taxes, insurance and loan payments. if there is common hallway or outdoor lighting, is it metered separately, if so, you will have that expense as well. 

My biggest obstacle at the moment is coming up with the initial down payment of $125,00.00 for the bank .

I need this amount to put as a down payment on a hotel .

I'm now looking for a quality loan servicing company out here in the Bay Area, or anywhere for that matter, if they can help facilitate my payment process to the seller.

My question was if I could attain an equity line on the newly purchased property if I have no equity in it yet since I did a 3 year interest only with a ballon payment on the backend with no money down.

I do agree that if I had seen more reliable information I may have accepted them.

Especially someone who is reliable and does it right the first time.  

If the above numbers are correct then my return on the down payment/closing costs is still pretty good. 

Personally I would take the position that the full redemption payment (i.e., 120%) are the gross proceeds and the basis is whatever you paid for the tax deed, making the 20% profit a capital gain.  

My bank is offering to use my rental property which I acquired last year as collateral to lower the down payment from 20 to 10 percent.