Hey... interest only or not, the important thing is that you need to be able to have positive cash flow.

You surely want to create positive cash flow.

so much has been written about keeping a positive mindset - you could literally get lost just thinking about it.i think what's most important for alot of investors just starting out is to approach everything you do with a an attitude that screams -I'M GOING TO DO THIS AND MAKE IT MAKE ME MONEY!

With positive cash flows between $500-$1000 a month, it is hard to re-coup on a property that is $800k (even if it is worth $1MM).

Apparently they pay him 5%/month on the $150,000 he invested and the $7500 he gets pays for his piti, house expenses and he still has $1500/month positive cash flow on his owner occupied house.

I have an investment in Wyoming that is leased by the US Government and provides a positive cash flow of ~$3000 per month.

What you would do is have the buyer sign an "assignment of contract" which will outline that they will taking over the buyer position in the original contract for a certain fee.

After you have worked on the property it may have a FMV of 150,000 so they would give an 80% loan for 120,000 and look at it as having a 30,000 equity position to cover any loss.

Would anyone like to share positives or negatives for this senario.Motels are placed under LLC.

However if the equity is good, the lender will work from a position of strength especially if there is a second mortgage.