There is only so much equity to spread around while you are growing a portfolio.

This amount is generally between 10 and 14% depending on certain market factors.So, in my opinion, your spread will be largely dependant upon a favorable valuation from the appraiser.

I prefer usuing an LLC, but you have some lenders that will not permit that either, so in very rare cases (if the spread is big enough) I would close in my individual name if I had to.

For Apartments --depending on type of rehab-you always buy at lower price --however--if you plan to get financing --you do projections and add cost -- to purchase price --lender can include the rehab costs -- However, renovations to building or structral repairs --called Improvements --such that it will increas value of property and of course higher rent -- than it is different --it is deffered maintenance - and have to consider based on components -- you also need to talk to an accountnt --for depreciation consideration --you need to buy a soft ware to anlayze -- using what if senerios -- for different assumptions -- IRR is the best -- always leverage and refinance to maximum available at the time --after rehab or major renovations are done and rent increases or cash flow increases --I have done this for several Hotel loans ---similar principal apply --I use simple spread sheet to do five year proforma projections and improvements are added to loan --Lender keep money in escrow- called reserve for improvemnets -- fixed amount based on Recommendation in an Engineering Report.

David, one thing to consider is in 2010 you can do a traditional to ROTH conversion and spread the tax bill over 2 years.

What I won't touch are condos, no matter how good a deal or how big the spread.

I tend to just avoid properties with an IRS lien unles the spread between my buy and sell has enough room to cover the debt owed; but I know others are not as strict about that.If it were a short sale situation, then you would try to get a release on the IRS lien or otherwise pass on the deal.

Everything has risk, but if you underwrite things properly a portfolio should spread these risks out and keep you out of a lot of trouble.

Hi Shunda,Sounds like a small spread.

If a spread can’t be achieved and you go directly A to C, I still count that as closed.