NOI: $78,371 ($6,531/m)Cap rate: 3.4% GRM 19.4-Seller is "motivated" and has offered seller financing with two Scenarios:Option one: $2.3M Selling Price$390K down (17%)Balance of $1.9M at 1% interest w/ a 30 yr Amort. w/ a 5 year call (30/5) in the first year ($6,140/mo. plus taxes & insurance.)Then 2% interest w/ a 30/4 ($7,056/mo + T&I)Then 3% interest w/ a 30/3 ($8,048/mo + T&I)Then 4% interest w/ a 30/2 ($9,114/mo+T&I)Then 5% interest w/ a 30/1 ($10,248/mo +T&I)At the end of the five years, the owner would the option to refinance the property with a loan institution of their choice, or negotiate another 5 years with seller at a renegotiated interest rate.

The Brookings Institute estimates that lost productivity alone is costing our economy over $56 billion a month.

But to predict that pricing will fall off the cliff is no more than a guess.Keep in mind that large capital groups with institutional funds have formed to buy houses if any such a wave happens. 

@Evan ZelkovichSubject to deals often still require a down payment; their advantage is that they do not require the buyer to “qualify” for an institutional mortgage; that the down payment is negotiable to whatever the buyer and seller agree to; and that the time and fees of third party financing origination are reduced or eliminated.Disadvantages are that legally the note can be accelerated by the lender at any time since the due on sale clause is violated; that the seller remains liable for a note secured by a property he no longer owns; and that the buyer may be forced to seek refinancing just when interest rates spike.As a practical matter, subject to deals were a lot more popular when new loan interest rates were double digits and hard to qualify for while existing loans carried Much lower rates.

The HELOCs are renewed periodically so if something severe happens in the economy or even just with that particular lending institution they could change their rules that would make it harder or not possible to renew.

Hi everyone,Does anyone know of any institutions issuing HELOCs at this time that will allow the funds to be used for purchasing/rehabbing investment properties? 

However, with the Feds (and the federal government) pumped trillions of dollars into the market, it essentially force corporations and financial institution to act rather than wait out.

@Jennifer S. if you are living in CA you can refi with institutional lenders as looks like you were quoted a lite doc option.

You need DCR rental financing, bridge financing, and other sources of non conventional / institutional debt.

This allows the participants to share in the risk, work, and rewards.