I was looking at a property in a very desireable neighborhood in my town, I can get the house for 60k and the owner will hold 50k of the mortgage, there is however around 35k of work that needs to be done in the home--when done the home should apraise at around 150---here is my dilema, this can be a good flip, however this area is rapidly apreciating and I can get around 800 a month positive cash flow by renting---how can I get a loan for the down payment/closing and repairs?

There are tons of possibilities with notes, options, rentals, flipping, development, etc, but a lot of those options are dependent on your abilities, your interests, and your current financial position.

G'day,Just a tip for you, I was in your same position when I started out.

I have been continuously reading the posts, however, I took the position to sit back and read BEFORE posting anything on the site.

But it sounds like it over emphasizes appreciation over cash flow when both are important.Another thing that positive cash flow lets you do is immediately go out and look for another property to buy because your not using your salary from your day job to cover the negative cash flow on the other property.

Another word of caution to consider; I/O loans could lead to an upside down position in a depreciating climate.

Well....the average salary for an agent starting up in the states is $12,000 to $20,000 a year....and that's after considerable searching around and months if not a year of closing a few deals...try to find the money for the schooling as it can be a rearding career in the not too distant future....panamamalcolm

I could end up paying for this home out of my pocket because I cannot find a tenant ready to take my position in the lease option as the tenant buyer, which the original seller knew nothing about.

And if depriciable site improvements are $600K, you'll have a nice $18K+ taxable loss on about $8K positive cash flow.

Our goal is to generate enough passive income that my wife can quit her job and I can back away from my business by hiring people to do what I do and manage it from a far and pull a smaller salary.