I explain the process, give them a stack of prepared deposit slips and they understand that is how they pay their rent.Very simple and no risk of you walking around with a wad of cash in your pocket on the same day at the same place every month like those "landlords" who like to get their money put in their hand.

Finally, you weigh the potential profit in each scenario with the amount of work/risk involved, and decide what the optimal rehab scenario is.In reality, you should be running dozens of potential scenarios (not just four), but you get the idea...

I'd say they are doing you a favor, 24K loan and one point, they must not be busy, grab it.5 yr. is customary, banks can't take the interest rate risk at 5%. :)

You may not count pay from a new part time job if they have no history of part time income or child support being received on a 20 year old college student may drop off at 21, so that income is not expected to continue and it would not be counted.The amounts available to these students probably come with strings attached, most likely their grades must be acceptable, if they end up on probation funds could be at risk.

Risk does equal reward.

Has anyone on the forums had experience reducing the risk of a downturn in the home market, by buying a hedge on the stock/options market?

Then, you would not have to worry about cash reserves, or risk.

This gives them additional exposure and also, possibly even more importantly, a different risk profile.

Keep in mind, risk, reward and prices have a strong correlation in REI.

and you know the risks and their mitigations, your risk of losing it all are slim and knowing all of that will give you the confidence you need to go forward.