It really depends on a number of factors as others mentioned. 

Here's a guide to some common terms, rates, and factors you might consider when structuring seller financing for your rental house in Memphis:1.

All those things factor into this arena though.  

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

If not, it won't happen that way and you will have to look at a lease option to purchase.Please note that $2000/mo lease is probably a better deal than a $300,000 purchase taking all factors into consieration.

With historical vacancy factored in, that will likely be more like $143,000 rent topline, not including seasonal A/C surcharge revenue, plus about $1,520 in laundry revenue.Expenses: Total operating expenses are running about $59,200, before depreciation or mortgage expense, and not including the offsite property manager role (me doing screening, etc).

Having been in the lending space for a while now,  Interest income is not passive - its considered/taxed as ordinary income- just like interest you receive from your bank and savings account.Regarding profit and expenses from a flip, "that depends" on many factors but again if its short term capital gains, its not tax friendly.As always consult with your tax advisor / CPA. 

Thank youList on both, it's a probability equation- simple as that.Outside of that % depends on area and many other factors regarding air v.

There are seasoning periods which means you have to wait if you want more cash out if the property because of property improvements, time passed or a combination of the two factors.

The numbers especially don't work when I go the equity route and factor that into the cashflow.