This is good for someone with extra cash and still has plenty of cash to do deals.

However, @Josh C. is correct - they are only going to loan you a percentage of the value of all the properties added together.

I would analyze it to include the replacement rent once you guys move out because your true return of that property is providing you the utility of that rent (so if you lose $200/mo but would be paying $1,000/mo to rent elsewhere, it’s in fact a solid investment and you can ‘save that extra net +$800 towards increased principal pay down or save for another down payment.

I added a couple more pictures to the album

Hi @Ian Barnes Contractor fee is just what my GC charged for managing the rehab project instead of adding on to each individual cost.

You may find that the base has enough room for the drain to flow the other way... there's also a trap under that drain that's not in the concrete mind you... it would only take an inch or two of extra space to be able to turn it to flow from the other side.

As to the income, many people on here can attest that it's actually not hard to live on $50k when you have no mortgage, no car payments, no other debt, you have health coverage, low taxes, etc, and fortunately that number goes to $60k next year without considering any other cash flow (purchase of rentals, may pick up part time work myself for extra savings, etc.).

Seems to me the only reason you should use the commercial lender at those rates are if the house will not qualify for a conventional loan (foundation, roof etc) or you have no extra money for the rehab.

He is generating $150 extra after mortgage, bills, and saved costs for repairs.As we move into the direction of life and family future, we are looking at ways to create more financial freedom.

But in talking to lenders, I learned they don’t accept rent from spare rooms because it’s in my primary residence, the reasoning behind which I don’t understanding since that’s an extra $2650/month in addition to my W-2 income.