Make sure you are the 1st lien position on this property.  

We want to take the profits and buy apartments that we can re-position and use the cash flow for passive income.

When I mean small I’m talking 15-25 k in a high equity position. 

I have one potential tenant who wants 3 out of the 4 offices and a few other possibilities lined up who might be interested in the 4th.Here are some factors to the decision:My ultimate goal is to buy and hold properties for a long period of time so that once they are paid off, this will be my retirement income (I'm currently 35).While I have a positive cashflow on my first property, I don't have a lot saved up at this point that I could put towards a downpayment for the second property.I talked to a banker who, based on my current finances, would finance 100% of the property, 5 or 10 year loan, 4.5%, amortized either 20 or 25 years.So...from my perspective that looks like $0 down other than closing costs, and tenants lined up who are interested in the office.One problem is that given the asking price, and what the monthly mortgage + operating costs would be, the rents for the 4 offices would be 20-25% higher than the market rate.The potential tenant who is interested in the 3 offices is willing to pay that because there are some unique characteristics that they are specifically looking for that would be hard to find somewhere else.Let's say that tenant is willing to sign a 5 year lease initially.

If they did, I'm willing to take that risk because I'm confident in my ability to argue my position, my local judge is pretty fair and reasonable, and I can eat the cost if I lose.Your mileage may vary.

I hate asking friends for money, but for a potential 1st position at say 12%, it could be win win for at least 6 months

ALREADY HAVE MONTHLY CASHLOW ETC—- POSITIONED & LOOKING FOR A HOMERUN.

I hedged my bets that the property would hopefully go up since the Arizona market had been so badly beaten up and that the location was so strategically located to a very popular campus ( Arizona State University) and there was speculation that they would be building the Cubs Spring Training facility across the street ( lucky for me they built this 100 million dollar facility)..

This would put you in a stronger position and open more opportunities.

I am looking at the 2019 forecast in the Berkadia Report and it is showing a POSITIVE relationship between those two variables.