You can not expect to manage their money problems.It will take a while to train them to be responsible as they have never had to do that and you will have to evict a few but in the end a more efficiently operated business will produce higher returns with less work.During the training you must strictly inforce late payments from the get go and set them at the maximum you are allowed in your state.

Is it a strategy to sell your property, and then do a 1031 exchange into a larger income producing property, take out another loan to cover the additional cost and therefore provide you with a new depreciation write-off as well as more mortgage interest to write off right off the bat?

That way you recoup most if not all of your initial costs and you still have income producing land and income-producing pole barns that you could rent out.

Hi @Oziah Tamam,Wholesaling can be great for producing cash without needing much in the first place, but as Peter said, it takes a tremendous amount of work up front, with no guarantee for success.I think it really depends on what your goals are, and how committed you are to wholesaling.

Rito, So you want to build an income producing real estate business in 90 days? 

Fair market value must be less than the assessed because it is not income producing right now.If I can get the owner to hold the paper on a non recourse loan with a long amortization period so the property will cash flow, and no balloon, it wouldn't make sense to find a commercial loan correct?

Let's say you have a business plan that specifies that you will invest in properties that have a CAP rate of 10% or greater.You find a property, and the screen that produces a CAP rate of 6.5%, that property doesn't meet your plan, so it's passed. 

Like I mentioned above, sit may have cost you $500 for the inspection but that doesn't necessarily mean the report produced is now worth $500, and in fact they probably don't want it but do need it.

So the MFU will get max(GSI) - least(expenses) = max(NOI).So,  X(SFRs) at say 100k each vs 1 MFU at X00k,  (X being any constant you choose), the MFU will always produce a better NOI than all the SFRs together.For that, yes, you plunk down 25-30%

We also found another 4 units that produce about 11%.