@Juan Francisco yeah that makes sense actually...if the situation is the seller needs to get rid of the property or face being bankrupt then it it worth the shot for then to do a subject to type of deal 100%

I'd like to buy a small townhome to start my investing, but I do not own a house myself, I feel like if I do not do it before buying my own home, I wont do it because I'll invest everything we have in our house leaving nothing left for investing.We actually pay 1200, and we can possibly buy a 70-90K property that can yield 1000/mo.Some friends have advised us to buy a property, live it and then rent it, but we are not sure.What are your opinions?

This doesn't require you to actually own the property but still control it and potentially set yourself up for money up front, monthly, and on the back end.I am looking to find investors who are using this exit strategy for their business who can provide any Automation tips for the selling process. 

ERGO you are in foreclosure in the first place.GFC meltdown saw values drop 20 to over 60% in certain markets  .. your 70% LTV loan was underwater right out of the gate.So to answer your questions.In General... you have a foreclsoureyour value is 10% less than it was when you made the loan.. reason flipper butchered the job ... and again depending on state it could take 1 to 3 years to actually foreclose and of course your not getting any payments.. so your interest is wiped out. your cost of doing the foreclosure again state specific.. and I have never met a defaulted borrower that paid the property tax's  ( and again state specific how bad this will be).. you have selling costs usually 8% and you normally have to spend money getting the home marketable I have never met a defaulted borrower who left a home in perfect shape.So you add 10% market devaluation  8% for sales costs.. 3% for foreclosure costs.. 2% for back taxforce placed insurance and utls.. and depending on the condition of the home 5 to 10% for rehab .. you can see how this eats into your 30%  .. then take states Like were i live and properly filed mechanics liens are super liens they jump ahead of your mortgage.. this can be thousands up to 100 thousands if your flipper totally screwed the subs. 

Yes their estimates are way off but you can find actual solds which is what you are looking for anyway to make an evaluation.

She actually told me that our bank loses money on every mortgage originated under 50k, however they are required to underwrite every loan despite the size.  

Should I expect to not get paid at all until I actually start selling property?

I'm not a fan of package deals because people are usually trying to add a junker in there.Second, seller financing might actually be your only option in this case.

Please help me explore the pros and cons so I can try to find creative solutions to make seller financing a win-win-win solution for the seller, the buyer, and the realtor.I understand that the actual number of people that could sell in this manner may be limited.

All in all, I'm glad I have it even though it was a bit more work than I planned ... actually figuring out how to make it work is fun and a good learning experience.