I NEVER missed a note payment, tax payment or insurance.  

Typically has a balloon payment due in 6-12 months, so you need to ensure you're ready to get it rehabbed and sold (or refinanced) quickly.

If the numbers work when I run them, I know reality should only be better.ActualsPurchase Price $227,500Interest Rate 30 year conventional 6.375%Homeowners Insurance = $920.21Rents = $1,900 per monthTotal mortgage + escrow = $1,182.58 per month with rents at $1,900 my actual cashflow is $717.42.Additional numbers behind the dealTotal cash to close = $87,475.55Down payment = $80,000Homeowners Insurance - $918.36Rate Buy Down 1.283% - $1,892.43We paid to lower the interest rate by 1.283% over the course of the 30-year loan.

Afterwards set up a payment plan with her with a balloon payment in 3 to 5 years.

They will handle the collection and distribution of payments, amortization, escrow accounts, and any tax documentation. 

The lease is written to mirror the payment on the underlying mortgage.

I have enough liquid money for the down payment for the hard money lender, but that'll leave me with zero cash for closing costs, realtor fees, etc.

You have to be ready to make 3-6 months of payments on the mortgage yourself after they stop while you try to foreclose/evict them.

An interesting option that they can offer is interest only payments for 3-10 years.

I know there's seller finance and "B" lender that are good for the short term, but if a balloon payment is due say in 5 years, there's no guarantee that my DTI would be in a better place then I'd be stuck without funding.