The second major decision is related to the first; is your goal to invest in real estate as a sideline to your job or “regular” business, or to have real estate investing replace your main economic revenue generator?  

The revenue from holding will almost exceed flipping the only difference is if you need the money now.

The potential offer: $400K Purchase Price- $200,000 Bank finance Loan (to pay seller half of 400K)- 45K down/30 yr mortgage (bank loan & Closing costs) (using Heloc for down payment)- 8% predicted/anticipated rate for investment loan D:- $ 3,220 Total monthly payment Expenses ( Mortgage + Heloc pymt + Unforeseen Capital Expenditures-$500 )- $3,400 Estimated revenue from units (conservatively) - $150-$250 Estimated cashflow (Estimated cashflow in 5 years after Refi: $1,100)Seller finance terms:- $200,000 seller financed-2nd lien holder on property- $333 principal monthly payments only or $4,000 annual lump sum to Seller each yr for 5 years.- 2 % interest rate for 5 years to be paid at the back of the loan- Cashout Refi in 5 years to pay off Seller balance and our Heloc and obtain a better rateQ: How could I structure this with interest paid at the back of the loan?

Not just building business.Flipping business I agree has no value.. where you can have value though if your a home builder and have options or lot of land lots in inventory or solid options on those.. bigger builders will pay for your name just to get the inventory I have seen that happen here on the west coast quite a bit .But for those that just buy fixer uppers  as stated just no value in that anyone can do the same thing.Its like the HML business when I mine going my main competitor in Oregon that was bigger than me wanted to sell.. they did a big write up on it and they wanted 10X of revenue.. well they made about 1mil net a year which is about right for most of us in the HML bizz that are basically 2 to 3 man shops.

They do $13,400,000,000 in revenue annually.

If there are low rents or bad tenants for the two tenants that are there, you should be able to increase the revenue quickly and easily.

@Mary B. rental arbitrage is only a good idea if 1) the landlord allows it, 2) you're in a market where there's good cash flow (rabbu and airdna help project potential revenue), and 3) you're fine with none of the benefits of owning an assetMost people who get into rental arbitrage don't have the capital to buy their own home, but you might be better off networking with other investors and/or raising money from family and friends so you can actually purchase a property.

Estimated Revenue 300+ Are there any products available that would allow me to put 10% down?

Then when I out grew it, all three are revenue producers.

We will be using the business to pay for all expenses (mortgage etc) as well as collecting all revenue in our business bank account.