If the lender escrows for taxes, insurance, or replacements, that’s not a substitute for internal reserves; treat lender impounds as dedicated buckets and set your internal targets on top of those.A few practical sizing heuristics I see work well in the field: for small- to mid-sized multifamily, many owners are comfortable when the operating reserve roughly equals four to six months of non-discretionary expenses and the capital reserve equals at least one year of the near-term capital plan, replenished annually.

They are launching a new mortgage product HOPE (Home Ownership to Promote Equality).

Also, remember that your 1031 rules don’t change just because the replacement property is fractional: each exchanger has to replace equal or greater value and equal or greater debt, or add cash to cover any shortfall.

Good evening, Fred,They’ll likely defend the value by arguing that it’s “equalized” with other lots, since equalization is a core principle of property assessment.

And in my very seasonal market, I need the annual PITI to be equal to or below the gross booking revenue for my 2 busiest months (July and August). 

***My Out of Pocket $36,909.07Option Fee To Me $20,000.00My Adjusted Out of Pocket $16,909.07******My Cash Flow * $ 982.00 monthly**So, I didn't need bank financing, I sold it for $20,000 more than street value, I get tax write offs, I got $20,000 back immediately as an Option fee, I cash flow at $982.00 a month and if they exercise their Option, I’ll get $146,854.63 (minus the $20,000 Option fee) equals $126,854.63 cash along with any pay down during their Option period.

Mistakes - being too lenient with late paying residents. 3. would choose quadplex all else being equal 

Equals a lot of money.  

The higher our value, the higher the equity gain is - even if the % of gain is equal between the properties...the dollar amount is higher on the higher valued home because the property is worth more.

These are questions I would ask and as you noted, if it seems to good to be true.....I have not dove into this in detail, this is just what the "sniff test" questions I would ask - could be a great investment for people - I am just telling you what I would ask. question would be who is the lender with a proven track record as you note Chris that would be important to know is the fixed debt investments ( loans secured by RE) bringing in say 8 to 9% and the equity in the MF is making up the difference with rental returns.. so say rental returns are 6% and the Notes are at 7% that equals teh 13%  ???