I would be surprised if any will do one from second position and not require the initial lender to be paid off.

Thanks for the positive feedback.

I'd position it to them that this is your first of many investment properties.

The CAP and ROI seem attractive, but am I giving up too much in terms of the returns given my equity position??

Can you buy a property that will be cash flow positive there?

I have full time position in a separate business, but have flexibility to pursue this endeavor.I will be doing my due diligence with pouring as much info in my head as my RAM will allow, and may need to dump some old info and defrag, but plan to get as much info here and there and everywhere possible to learn the ropes and build this long term opportunity!

But if you realistically look at the total cost of owning a house - purchase price, interest, closing costs for both buying and selling, insurance, taxes, maintenance and upgrades - over the entire period of ownership a house is rarely actually a positive investment.

If you buy in a higher tax rate area, but the rents are higher and cover that expense and still give you a positive cash flow then it doesn't matter as the expense is covered.In my experience usually areas with higher taxes do not have proportionately higher rents so your lower tax rate areas will be better for cash flow, but this may not be the case everywhere.

He wants to be in a position to have the option to sell a house to cover family costs like that while not having to have me approve it because we are in a different stage in our lives.

You might want to shop around on craigslist - my last one was closer to 3K, but could have been smaller size.Are you positive the water leak was from the toilet and not a frozen/leaky supply line?