Here's a link describing the rule: http://themortgagereports.com/6336/delayed-financing-rule-cash-out

I have NO IDEA how the rules work in your area, but in most places if you get a call from code enforcement the first time it's usually a warning...and even if you don't get a call, we recommend putting them out on Friday and picking them back up Sunday evening.

State law for the state in which the property is located rules.

This is a significant new ruling, so I think it deserves its own thread.

My rule is that I have to be able to pay off in a year or less.

Nicolas,It probably depends on where you are putting them and your local rules.

You ably illustrated it in your rule of thumb of 10% plus note carry to make it work.

If you use the 50% rule you are looking at $2083The 2nd with those terms $1272It sounds like the seller knows what he is doing.

Assuming you take the buyout and purchase another property for 25,000 and rent at 2% of acquisition, your net rent after expenses and reserves (50% rule) is 250.

The rule seems rediculous in my case.