I am equally happy with doing HML and they both have a place in my investment strategy.

Next, create a new rental agreement stating that the tenant will pay a base rent and agree to pay the "behind rent" over "X" amount of months_that equals to "_________" extra each month starting with "X" month.Your challenge will be overcome; and your fear, your father's fear, and your father's tenant's fear will all be overcome.

Initial Investment is defined as the Sales Price, NOT the Sales Price + the Cost of Improvements done to the property " So from the above statement, this seems to mean that the New " Cash Out " loan can NOT equal more than the Initial Purchase price for the property + the Closing Costs ?

I would agree with your approach, all things being equal.

Both units are equal with 800sqft.Rents:Unit 1 was rented for $750, lease expiring end of April.Unit 2 owner occupied, my property manager expected $950 on rent, I calculated for $900.So for both units I expected to achieve $1800 in rent, and hoped for $2000.

Amazingly, he had been keeping the $400,000 in cash uninvested in the bank for almost a decade, and so after finally finding this out I was eager to help him get some return so that his money won't run out.My father is quite backward when it comes to using technology (e.g. email, internet), and also somewhat ignorant about real estate and rentals, and so my help in researching and transacting property purchases is crucial.

In the same area, semis are going to be cheaper than detached and assuming of course lot sizes and sqaure footage are equal, I wonder if buyers of high priced, fully renoed properties prefer design over actual dirt/lot size which requires maintenance, gardening etc.

These numbers come out to about $534/mo payments on that, which with your rental income equaling $750, you'll have around $216 leftover.

If they do cancel early you want to see an early termination fee equal up to 50% of the remaining lease.

Our group has a total of 4 equal partners and we have formed an LLC, however banks will not loan to our LLC for a single family home.