@Caleb Brown -Thank you--the place was purchased early last year by current owner and completely renovated. 

That sounds very interesting!

Seller will be taking a 30k+ loss with this route.325k with 50K down to seller, 3 years of payments $1600/month, and a balloon payment of 215k at the end of 3 years.Benefits to me: (1) 10k less downpayment, (2) with the conventional route, the loan would be at 228k after 3 years of payments, so I will gain additional equity with the 2nd option since I will owe 215k (presumably I will have to refinance at that time).Benefit to seller: she gets over asking price, 50K upfront and $300/month of cash flow.Does this offer and structure sound reasonable?

Sounds like you've started your research on OOS investing, but the single best piece of advice I can give you is to establish a trusted investor-friendly agent who will be your boots on the ground once you decide which market you want to target.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if  So it sounds like im not missing anything on the risks, from your perspective at least. 

Please let me know what is convenient for you, and we can set up some time to meet.Aloha,Barb That sounds great, Barb.

It sounds like you’ve got a solid strategy and a clear focus on building your portfolio with multiunit properties, house hacking, and BRRRR.

Sounds like you are going with a Fannie/Freddie type loan based on the cap of 2%.  

Garret completely agree with you.

Communicate with your tenant on tasks you are uncertain about and confirm if there are comfortable living with fixes you completed or if they would like a professional.