Hi bs73,While it is true that the market conditions nationwide are not as HOT as they were a couple of years ago, and indeed, some areas are declining, there are lots of areas in the country that are doing just fine, and some areas that are booming!

Network like crazy and you should be fine.4.

It's been fine for me so far.

For some reason he figures this business model is more profitable than spending $2000 and keeping a good long-term tenant and not paying the city a $650 fine twice a year for code violations.As I was moving out I noticed a mousetrap behind the stove.

You end up fine for those five years (assuming my restaurant doesn't go under) but if I leave when the lease is up you are now stuck with what is effectively a $500K property for which you paid $750K, and you'll be unlikely to get a tenant who is going to come in and pay above-market rent.

If the seller is fine with their second mortgage and 105% financing, what other sources could I use to get that first mortgage?

Welcome Jessica,Two years sound just about right. now its cash time.I think you guys will be fine.

Non-compliance comes at a dear price; loss of freedom (jail time), liquidity (fines) and rights to practice business.

It is fine to flip, rehab, lease to own or whatever, but it is not a lasting investment, it is a cash flow business like any other.

So, now, you are forced by circumstances to not live in that place anymore, and can't sell, or can't sell without a huge loss, and can't rent, so still must pay the mortgage, dues, fees, asssessments, fines, and insurance and taxes, r&m, etc, on that house, too, you may find yourself in a tragically untenable situation.