One question though: I called a hard money lender for the first time today to get pre-qualified ( Brookview Financial.com ) and found out that they want an investor to have 20k worth of liquid assets per 100k of loan.

They don't look at your credit score really nor your abilty to repay.If your credit is less then 500 and you really don't have the income...I will suggest you wait until you are at a point that you can qualify for at least a conventional loan for at least 75 %.

Some will work diligently for you, some will work only when you call.Using a Real Estate Agent, is an important step and unless you are qualified to find the properties, negotiate the sale and financing on your own you are faced with difficult decisions that you may not be prepared to make.I hope this helps, and good luck.

I would qualify the landlord in much the same way they would qualify me as a tenant.

A qualified buyer, a property, and access to money.

The reason for non recourse is that the property qualifies for the loan and not the borrower.

As you become more experienced with investments on this level you can begin to consider larger investment strategies.Once you have qualified your financing, you know how much you can afford.

I just liked how I didn't need to qualify to run a credit report because the tenant logs in and authorizes you to run their credit.

With a 605 credit score and it sounds like slow pays on at least one trade line you may not be able to qualify for a conforming loan.

But I take your point.I'm guessing that the townhome qualifies for the "2 out of 5 year" rule for preferential tax treatment which is one more reason to sell it now.I don't like being a long distance landlord, I sold all of my rentals before I moved 200 miles, so I wouldn't keep it unless you KNOW you might move back and re-occupy it.Your math analysis is correct.