@Donald Capwell, oh, the holding cost I was referring to is the HML interest rate per month (1%) for the initial property purchase, which would start from closing day, right?

These are the same areas buyers will look at when financing is available so they are the best opportunity for appreciation also (at least in this area).Your comment on I-90 just reminded me that a new 400 million dollar hospital was just announced to be built at Riverside next to I-90.  

First let me say that for this 4 unit I'm referring to, I Am knowledgeable about the area.  

The type of sale I'm referring to is a bank foreclosure. 

One complex is 99% occupied with strong collections and we've been consistently raising rents...due to our constant increases 3-5% economic vacancy is pretty tough to achieve but downright hazardous to underwrite to.  I

But I do not know it near as well as I'm sure you do and I'll be sure to contact you with any further questions.And it's technically Hollygrove I guess, but it's really on the border of mid-city and dixon, right across from the Costco just next to I-10.

If I decide to pursue this option, how to I find qualified REIs?

I would bet a dollar I may know the investment fund you are alluding to.  I

The only other conclusion I have come to is that my expenses are out of line, but they are 50% of the gross income so they do satisfy the "50% rule"...

BTW I'm assuming the person your lending to is not in your linear family tree.