In any job role you jump into you will have a period in which you won't be truly in the front lines.

Many lenders are doing periodic occupancy checks and because the property is investment / Rental, if caught committing "Occupancy Fraud" the lender can call the note due, foreclose and the owner is out like the fat kid in 5th grade dodge ball!

Cheaper to set up, shorter loan period, interest rate changes with the market.Both of those are assuming you want to own property.

You run across periodic threads on BP of "I want both!"

The HELOC is fixed for the first 5 years and then it will adjust with prime, the draw period is 15 years, and the amortization schedule will be 30 years.Since I think the market is hot/inflated right now, and inventory is low, my goal was to get a high appraisal, lock in a HELOC, and use it to buy properties at a discount down the road (assuming that prices will reset within the next 5 years).

I will definitely be checking deferred maintenance during the due diligence period and most likely there will be some needed.It's definitely not 100% turn key, there are most likely some renovations I can come in and value add, especially in the exterior and extra security to make the residents feel safe as it is a C class area. 

The others are much nicer than others I've looked at.So, here's my updated numbers. 

If you back out due to findings on the inspection within the contingency for inspection period, you will get your earnest money back.  

That's WAY more expensive.There are real damages here, however:Holding costs during the period under contractTime costs for work put into contractA possible future price reduction on upcoming offers after the property is re-listedI believe it's far better to find an amicable deduction from the earnest money based on those above items.

I haven’t seen any activity in this house for a longtime and I can see it needs updates for sure but it looks mostly just out dated.