If the borrower makes payments you will do nicely with 15% return.

I guess what I would like to know is...what's the best way to tackle this and maximize borrowing power.

@Benjamin O'Brien -- Are you saying you lost money on your deals or just waiting for Realtyshare to figure things out as the borrower isn't paying money?

My epiphany came when I found out I could borrow out of my 401k.

Just means that it will be easier for you to borrow money to fund your next rental acquisition.The benefit of rental property investing is not the tax benefits, it is the cash flow your tenants are buying for you.

I wanted to post this link http://www.foxbusiness.com/personal-finance/2014/02/06/fha-loans-still-offer-advantages-in-2014/ FHA is the lowest barrier to entry for home ownership, and it is important if you are advising FHA possible borrowers you need to know your stuff.

So, if you buy a $100K house with a $96.5K loan, and its really worth $133K, then you might be able to borrow $120K on a refi.

Borrower must sign that before we even start any type of conversation regarding the default(s) at hand.As to DPO, this is a term used often on the commercial side, and for some reason many lenders will not do a DPO with the borrower, but would rather sell the note instead.In any event, it sounds like you're saying on the residential side, short sale is probably the way to go.

If those run out getting rid of your credit card debt could become more important, and when the interest rise, so do the payments, which would hurt you on DTI.I am a big believer in leveraging, if I can put $15k cash into a house that will throw off $300-$400 a month, I don't mind borrowing that $15k if I can get a long term deal on the money (which i often have to do to keep reserves at the proper level),,,but I have an exit strategy, if everything ever starts to cause a problem I sell one rental and pay off all non-mortgage debt.

The question I have is should I borrow through the LLC or borrow through my personal credit?