https://www.chicagobusiness.com/commercial-real-es...A court-appointed receiver is taking another big step in his push to sell off a portfolio of local apartment buildings tied to an alleged Ponzi scheme.A broker has already lined up buyers that have agreed to pay a combined $7.7 million for six South Side multifamily properties owned by affiliates of EquityBuild, a Florida-based real estate firm accused last year by the Securities & Exchange Commission of running the Ponzi scheme, court documents show.Now, the receiver, Kevin Duff, is asking a judge for permission to put a dozen more EquityBuild properties—11 on the South Side and one in west suburban Maywood—up for sale.

I should clarify that the house isn't a dump, but combined with the risk of maintaining the property and little return I wasn't sure if it was better to leverage the equity or just dump it.

Hi @Travis Kemper if your combined total of 401k and IRA is only $50k, I would recommend rolling the 401k into a self-directed IRA and doing the same with your IRA.

When you factor in the 4 benefits of RE; tax benefits, debt pay-down (equity growth), cash flow, and appreciation, really the best time to buy a deal is when there’s a good one in front of you.

I have used straight debt from hard money loans to purchase small apartment buildings, but I am looking for another scenario as some of those investors have asked to be equity partners, but I would like the option of buying them out at some point. 

@Tyson Lee Debt Service per year.

Prepared By     Key Investment Criteria Client Name     Max Offer  $       425,000   Property Address     Down Payment  $                 -    Number of Units 12   Cash Flow (Per 100K) $88.30   List Price  $     425,000 % of List Price   Cash Flow (Monthly)  $         375.29   Offer Price  $     425,000 100%   Total Cash In  $    10,000.00   ARV/Appraised Value  $     450,000   Debt Service CR 1.16 Pref >1.2 Discount (%,$) 0%  $                 -     Debt Yield Ratio 7.65% Pref >10% Purchase Price (Max Offer Price)  $     425,000     Cap Rate 7.47% Pref >8% Percent Down 0%     LTV 1.00 Pref <.75 Down Payment Amount  $               -      Rent/Price Ratio 1.35% Pref 1.25% Amount Financed  $     425,000     COC ROI Year 1 218.0%   Interest Rate 5.20%     (Exp+Int)/Income 84%   Costs of Repairs  $         5,000     Gross Rent Multiplier 6.3 Pref <9 Closing Costs  $         5,000     COC Return 45.0% Pref >10% Total Cost  $     435,000     Break Even Ratio 93% Pref <85% Length of Mortgage (Years) 30     Expense Ratio 53% ~50% Payment Monthly Annual   ARV-Total Cost  $         15,000   Monthly Mortgage Payment $2,333.72  $      28,004.65   % Investment of ARV 96% Pref <75%     10 year Return 65% $284,164 Rental Income Monthly Annual   15 Year Return 113% $490,037 Unit A (10 unit Apt)  $    4,550.00  $      54,600.00   20 Year Return 172% $748,269 Unit B (Duplex)  $    1,250.00  $      15,000.00       Unit C  $               -   $                  -    DSCR greater than 1.45 1.16 Unit D  $               -   $                  -    Standardized Cashflow >180 $88.30 Gross Rental Income  $    5,800.00  $      69,600.00   LTV less than .76 1.00 Vacancy Rate 8%     ROI year 1 greater than 20% 218.0% Net Rental Income  $    5,336.00  $      64,032.00   Expense ratio between 45 and 55% 53%     Positive initial equity  $     15,000 Expenses Monthly  Annual   15 year return greater than 115% 113% Property Management Fees  $           320.16  $       3,841.92 6.0% Total Cash In Less than 50K  $     10,000 Leasing Costs  $                  -    $                  -  0% DYR greater than 9%   7.65% Maintenance Reserve  $           750.00  $       9,000.00         Utilities  $           375.00  $            4,500         PropertyTaxes   $           640.17  $       7,682.00     Insurance  $           325.00  $       3,900.00       Other (Snow, Lawn Care, Trash, etc)  $           216.67  $       2,600.00     Total Expenses  $    2,626.99  $      31,523.92               Net Operating Income  $    2,709.01  $      32,508.08                   Mortgage Payment  $    2,333.72  $      28,004.65         Total Cash In (Downpayment + Repairs)   $   10,000.00           Net Cash Flow  $       375.29  $       4,503.43                   Investment Analysis         Appreciation Rate (20 YR AVG = 4.4%) 2.5%           Rent Appreciation (20 YR AVG = 3.1%) 2.5%         Cost to Sell Property 0.0%        

Is your goal leverage to buy more investment properties or maximize cash flow by paying off all mortgage debt? 

In this way they are able to accelerate buying properties and investments versus doing a one off syndication every time they want to buy a property.Example if I want to buy a property for 10 million with 7 million debt and 3 million equity and I do a one off syndication then I have to raise up to 3 million for the equity.

Ideally, looking for something like the Bank of America 3% down, but not sure if that will combine with a down payment grant.