I do understand what you mean about slowing down and counting my cash flow.

I understand that the rules would help you determine if the property cash flowed and that the 2% one was used first, while the 50% was used more like a final factor (in the example).What doesn't make sense is why the property was deemed a bad idea, wouldn't the fact that the 50% rule gave 0 cash flow (rather than negative) mean that the investor would still be able to make money on loan pay down?

Any tips, suggestions and referrals to REIs who have a good understanding of MFD market in Union County , NJ, as well as property managers, would be appreciated.

As other have said, read the forums, listen to the Podcasts and read the blogs.I would also recommend the local REIA - www.digonline.orgIn fact, this Thurs evening there is a large exhibit being held by the REIA where there will be over 65 vendors including lenders.

My understanding is that the property owner needs a written document about the transition happening.Is there any standard procedure (e.g.

I understand youre not a lawyer but id appreciate any feedback on this.

I understand youre not a lawyer but id appreciate any feedback on this.

This is something that I have sturggled with a bit as well...as a Finance professional I understand the power of leverage that REI offers but still find myself thinkibg about using some of the monthly cash flow to accelerate principal paydown.

@Andrew R. the NRW 91-01: Withholding on Sale of Real Property by Nonresidents is a good link - I went to bookmark it and found I had already done so in 2012 :)My understanding is that it's "withholding" meaning the seller may get some or all of it back once s/he/they file a tax return in Rhode Island for that year.Also a close reading mentions a possible exemption for sellers 55+"In the event that the sale of the property by a nonresident will not be subject to tax under Sections 121 (One-Time Exclusion - Over 55 Principal Residents)... the nonresident seller must make the gain election and file the RI Form 71.3 Election even though no withholding need be made""If the property Martha was selling was her residence and if she otherwise qualified and intends to treat the sale under Section 121 of the Internal Revenue Code (one Time Exclusion Over 55 Principal Residence), she would still have to file the election form 20 days before the closing but would complete the election form and use the special types of transactions area on the back.

Looking to understand the qualifications and how long the process takes.