Hey Ken, yes, total net profit is $25,000.Closing costs, holding costs, closing costs .  

Holding the property should pay down the loan and give us tax benefits. 

Holding properties in an LLC (or other legal entity) can offer valuable protection for your personal assets, so I understand why you went that route.

Holding LTR in san diego on a new purchase is challenging not to be large negative at high LTV.  

I started out buying and holding mobile homes for cash flow when I first started out.

While that may be good for the 10% pref investors, you may have been better off holding another year and getting another 7%.Related to this, I generally don't like preferred returns as a passive investor. 

Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs. 

He said that you can still sell the home, and this would not hold you back in doing so. 

It appears to hold much year round potential with the right tactics and tools.

The seller will also have to sign documents that are required and it will hold them liable for debts since they are on title.Best way to set that up is run the numbers and create a partnership based on the equity of the land and your cash injection and sweat equity.