I think some people look at it too critically by saying "You'll waste time in class when you could be reading books/forums/blogs and working with real investors."

A conventional lender will require that the property pretty much be in move-in-ready condition in order for underwriting to approve the loan.In other words, something as small as a non-functional water heater, a broker stove or a missing railing going up the stairs can deter a conventional lender from approving this deal.

Ok To update this topic I am nearing the completion of my project with my duplex in the sketchy neighborhood I have had a few people approach me about renting the unitsthey like the price and couldnt care less that I put in accent walls or that there is a waterfall faucet and a floating vanity.they just want a clean place to rest their heads.so perhaps I was all wrong in trying to provide the upgradesone upgrade they did like was the washer dryer hook up i installed by converting one of the two hall closets into a space for a stack washer and dryer.I liked what one of the earlier respondents said concerning durabilitymoen faucets because you can change cartriges and tile the tub surround becuase of durability I will be looking for ways to have function as well as form and keep it simple.maybe I will keep the floating vanities and just install pedestals with shelving and keep the floating vanities for myself.

Any other critical issues you think need to be addressed in structuring such a position?

Hi George,The areas you are talking are mostly driven by appreciation and speculation that values will keep rising.That is a very low cap of 3.5%.I do work with many investors from California,New York etc. wanting to get a higher return than what they can get locally.I have owned businesses before so it is critical when buying a business that you have a proven business model in place with management so that you do not have to be there every single day.If you set up a business as an absentee owner with moderate supervision then you can count that as an investment and not a job.I don't know that you put 800,000 into your dream home.Having the money work for you instead of dead equity especially being able to lock in low interest rates today I would invest as much as I could.Get a loan for that house and put minimum down possible to preserve cash.The Ocean house is nice and I am sure it will appreciate over time but will be dead equity until you refi out or sell.Even on refi they will not let you go to 100% so any appreciation likely you will not be able to refinance because of LTV ratios in the near term.I don't know that you want to be a real estate agent in the typical sense.You would have to define residential versus commercial etc.I would put most of your money to work as I don't think your cap is going to get any lower for resale plus you can invest in markets without rent control where you reap more benefits.

In 1999, in the same kitchen, the wood did not look so good, so I popped the wood off and took the doors and drawer fronts to the local powder coating company, and they still look gorgeous today.The takeaway on that one: don't ever replace metal cabinets if they still function, they will out last any wooden cabinet if the hinges don't give out.

One thing that was critical for me was to team up with a partner.

* Your maintenance looks way too light when you factor in turnover/make-ready expenses (function of your average tenancy and quality of tenant, probably about 18 mths tenancy in multi family), and capital reserves.

However, the reviews I have seen for W8 have not been good ones, especially for business functions, but there will be a lot more reviews and information very soon.

I would venture to say the bad leveraged deals were a function of the market being overheated,not factoring numbers correctly,and overpaying to obtain seller financed deals.They bought wrong at the wrong time and paid to much.The leverage wasn't what made the asset lose money or value.Leverage used correctly on larger assets using the income approach you will not incur huge losses.The keyword is used correctly.I see many deals transact with people with more money than common sense and scratch my head trying to figure out what they were thinking.