The reason being that money isn't really invested in the deal, I understand you want it in place for a safety net but that isn't a function of the cash invested.So the numbers I come up with are:Ask Price $64,600.00 Loan $51,680.00 Down20% $12,920.00 Closing6% $3,100.80 (I use 3% but I'll go with this for you) Touch Ups2% $1,292.00Property Type 3 Rent / Unit 483.00 (Based on reported annual gross) PI 285.38 (I used 5.25%)Expenses 50% 724.50 Total Expenses 1009.88 Monthly Gross $1,449.00 Annual Gross $17,388.00Monthly cash flow $439.12Annual cash flow $5269.45Recover Funds $18088 41.2MonthsCOC=29.1% There may be an error or two from as I copied it over from my "quick and dirty" spreadsheet, but all in all I think you get the picture that this is a pretty decent buy.

Thanks in advance,Sean

I am aware that some lenders do not approve his sort of cash back at HUD, but is there something else I need to be aware of and watch out for.Thanks in advance for your valuable advice.

Thanks in advance.

Michael's fire has me thinking about safety inspections.

From past experience the more things that move means more things that get broke.Thanks advance for your input.

So your $6k out of pocket gets you a C Corp and ability to use retirement funds to buy stock in your C Corp.The things I did not consider:- You are an employee of your C Corp, so if you hire any employees you need to extend many of the same benefits to them that you receive, including participation in retirement plan- If you hire employees you need to offer them the option to also use their existing retirement funds to purchase equity in your business- Possible advantage of LLC over the C Corp- Once you sign and speak with your assigned independent counsel they will advise you on the increased scrutiny you face with IRS, need to keep additional records and document corporate meetings, etc.If I had a more complete understanding in advance I may not have gone this route.

I still believe you can do specs with great safety.

PubID=772Other housing safety brochures:http://publications.usa.gov/USAPubs.php?

Thanks in advance.