It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

It would eliminate the worry of finding a licensed MLO for Dodd-Frank, and I would get a lump-sum.Anyone done anything like this?

In the same year I've remodeled 2 other units and have some debt because of the 3 remodels.

@Page WeilDTI is calculated as total liabilities (normally those reported on your credit report unless some debts do not show such as additional mortgages) divided by your total verfiable income.

You can get fairly good returns through mortgage notes / promissory notes and can get creative with being a debt partner or equity partner.

@Emad NasserTry to get a quote on what loan you can get for this property, so you can factor your debt service into the calculation and see what your cap rate is.

If the property & loan is small the cost to collect on an unpaid debt is a much higher % of the total debt.

This will cut out hours of questions/meetings with the contractor, and eliminate any delays because he doesn't have the info he needs to order and move forward.

@Nicolas Da SilvaTell us the cash flow with the debt service and without, and then what the cash flow would be with the PMI.BTW, you called this a legal duplex, but did not call it a legal non-conforming triplex.

They will respect you and you’re doing them a favor by them not going into debt.