Of course you could always supply that equity initially and replace it with a mezz note once the primary note is in place.

For example, we are currently working out a few PE deals where getting paid back quickly at a set return is our primary objective. 

Of course the above explanation would only hold true if in fact when you first inspected the property the water was turned on at the water shut off valve. 

I bought my primary residence earlier this year and in the 70s, the seller paid less than 1/6 of what I paid for it.Shaun Weekes Thanks!

Mine is $450/month (with no cash left in the deal, and a PM in place).Here are the steps with explanations:1 - Get cash together.2 - Find a RE Market that will allow you to use your cash ONLY for all costs (buy/rehab/etc...)3 - Find a lender that will do REFI loans on Rentals...and what their terms are.  

That is, if an owner installs an electric register or gas unit, which is supposed to be used as a secondary heat source and it's used as a primary heat source in the dead of winter.. 

I would get an FHA (3.5% down) and move in as primary residence.  

My primary focus today is to acquire residential real estate that generates cash flow in regions that are likely to substantially appreciate in value.I currently have 2 SFR rentals in Southern California and 1 SFR primary in Southern California and my primary focus as of now is to acquire multi-family residential real estate that generates cash flow in regions that are likely to substantially appreciate in value.Happy to be a prt of this forum!

@Jim Adrian thanks, yes you're right. i wouldn't buy it how it is now for my primary residence. renovations for a lot of people are a huge pain too. i appreciate the feedback.

I was also mistaken about the length of time you needed to reside in your primary residence to not pay capital gains (I thought it was >12-months).