Scenario #2- 4 plex , one unit occupied at $500 per month and the rest can be rented out at $500 per month so potential $1500 gross rents.

Your EIN number will issue a 1099-Misc to him showing $700 in Box 7 non-employee income.

Gross rents (ignoring vacancy and loss for now) will be about $572 x 18, or about $10K.

Is there anyone on BP, or perhaps in America(besides Dave and his employees) who pays all cash?

If all your PITI pymts don't exceed 28% of your personal gross income (36% all installments) you should qualify.Not all credit unions know what they are doing, a bank might be a better choice.

The one in the dining room was pretty gross too.Don

Just for some quick numbers:Purchase price: $79kARV: $182k (from appraiser)Rehab costs (not including foundation/masonry work): $20kExpected foundation / masonry costs: up to $25kAnticipated gross rent - quadplex w/2 car garage - around $2600/mo (from several PM companies in the areaSo total cash into deal is about $129k, or at 0% down (not what I'm doing) I could cashflow at about $700 total or $175/door.But - the lenders won't fund the deal.

He also was sued by the Feds in 2005 for not paying out 401ks to his employees from his before company in Utah.

A solo 401k is available as an employer plan if your business has 2 or less employees (you and your spouse.)

Let's touch on three points.1) He's created a company with 55,000 employees.