I see a lot of clients come to me with term sheets from other lenders that arbitrarily increase the ARV or credit score, just to bait and hook the borrower into doing business with them, so just be on the lookout for this. 

You don't have to pay cash.Rooms to go has zero interest on whole rooms of furniture all the time.Put the other stuff on a credit card and pay it off quickly.

I have been investing in residential real estate since 2012 first in California and then in Florida.My cash flow has been slowly and regularly increasing during the years thanks to the cap on property tax increase in these 2 States (IE proposition 13 in CA and 10% cap on investment properties in FL).Recently I started to analyze deals in Texas and Indiana for my next rental property.Reading some posts on this platform and talking to some investors, I quickly realized that, during the years, all the rent increases will be eaten up by the regular property tax reassessments.I think many investors often underestimate this issue.Am I missing anything?

I am happy to speak to what I have seen as the most common set up from a tax perspective to give you a starting point for a deeper discussion, but ultimately you will want to speak with your CPA in conjunction with an asset protection attorney because this requires a deep dive into your specific situation.  

And what is your credit score?

I'm wondering if he would be willing to accept an offer that has long term tax benefit, I would give him his asking price, the only real problem I foresee in the repayment would be another big downturn.

Utilizing their favorable financing relationships to then secure a ~$1M loan from a local credit union.

Nor would I buy here with the looming property tax threat against STR's. 

Other kinds of liens jump ahead in line such as IRS tax liens, property taxes, municipal utility liens, etc. 

• Purchased directly from a mom-and-pop operator off-market• Secured $1M credit union loan and raised $500K equity to close• Existing owner had inflated expenses and below market rents• In-place rents approximately 30% under market at purchase• Expense ratio at least 10% above the norm How did you find this deal and how did you negotiate it?