Or is that only part of the equation if you draw on it and have a required monthly interest-only payment?

Especially with new local zoning laws, in an attempt to address supply problems, understanding development could equate to greater cash flow for many real estate owners in our area.

@Anne PitkinAlways speak to an accountant and attorney before entering into seller financing deals.What the seller purchased the properties for is not a factor in the equation; what they owe on the properties does matter (if anything).

I don't believe doing much more will equate to a great increase in rental income.

If you live in a moderate to large city finding a few good partners on both sides of the equation just takes a little time and effort.

From there, it's just a math equation comparing that interest cost to the closing costs. 

This equates to more days that the unit will be rented, and it will also eliminate the leasing fee from the PM company every year (if the tenants stay more than one year).Everyone has a different opinion on this subject.  

If you factor in improvements that mitigate the downsides of a property near highways and freeways into your rehab equation there could be a win.

But there's another component to the equation. 

The Taxable Value is uncapped and equated to the SEV upon a sale or other transfer of property ownership, with limited exceptions.Once you know the Taxable Value, you can look up the property tax millage rates, which each city & county sets separately (with voter approval).So, yes, it is very possible for property taxes to jump from $907 to $3200 if the seller has owned the property for quite some time.You can use this tool to estimate your future taxes after they are uncapped: https://www.michigan.gov/taxes/0,4676,7-238-43535_43540---,00.html