Commercial loans usually require a net worth equal to the loan and liquidity equal to 10% of the loan.

We have the cash reserves we wanted to build, and now want to start maximizing profit on the individual deals by cutting holding costs, getting higher offers, and minimizing taxes.We have decided that selling with either a lease option or seller finance will be our best option.What do you see as the biggest reasons to do one vs. the other.So far my thoughts are that they are about equal with a little more risk in owner financing, but owner financing will also allow a refi for the buyer and build their credit quicker because we use a servicing company for the mortgage payments.Our target market will be first time buyers that just need to build some positive credit or correct a few things, or people that had issues (foreclosure, BK, SS, etc) in the past and are just waiting the required time period to take out a mortgage.If you had a house and all things were the same, it was guaranteed to close in 18 months, what would you use to sell it to maximize profit?

so said Warren Buffett at the annual Berkshire Hathaway Shareholder's meeting last Saturday.And while he was talking about the Stock Market, I think that it applies equally well to Real Estate.

That said, I have not spent above $200K for a property so can't personally comment on expenses there.Sometimes we might think that the expenses for a MFH are not proportionally equal to SFHs (i.e., a three unit does not have 3x the expenses of a SFH - a new roof is not 3x as expensive; insurance is not triple a SFH rate, etc), but we forget that USUALLY, income for a 3-unit is not equal to 3x SFHs either.

So I am trying to buy a home in a particular developement that has pretty equal amounts of regular sales and REO's and short sales.

But, it is vital to declare this on your tax returns when investing to save on taxes.

My goal is to have a cashflow statement showing a passive cashflow equal to or greater than my expenses within ten years.

Property management is vitally important when it comes to your assets, regardless of whether it's down your street, or 3,000 miles away.

Followup, is it true that we don't want to hold a mortgage note near its maturity because the deductible portion of the payments will be too small and we are better off cash-out refinancing to an equivalent payment size as long as we can produce income on that cash-out equal to the interest rate of the note?

I will not give up, persistence and perseverance are paramount and vitally important.