I have a lender willing to do a blanket loan on an ARM that will payoff the seller and bring rate to 5 but the ARM is only 5 years.

I'm not having the deductible problem as much as them wanting an arm and a leg for premiums.

So it might be fixed for 5 years, then begin to float at something like 1yr treasury + 3.25% (referred to as a 5/1 ARM).Google the BP site for "portfolio loans" to get more information.

Hopefully the above arms you with some info on how the process works and gives you ideas on the types of things that you should be asking when you start looking and the various lending sources.   

If you are comparing the stability of the investment- vs a shopping center or some other kind of income property, the GRM is a number that many people can get their arms around in the risk assessment part of assessing the deal.

All transactions must be arms-length, meaning that there must not appear to be any impropriety taking place between buyer and seller.

So that is also something that needs to be in the agreement (when I was selling and not giving keys, I had that explicitly stated in the agreement).How about utilities and property taxes?

I don't recall explicitly asking the lawyer about raising the rent.

Then there are things about the deal must be an arms-length transaction and a bunch of other stuff.Anyway, this letter must be signed by buyer, seller and both agents and therefore anything in that letter must be adhered to, including the part about the seller not getting any money.So, read the letter and you'll know specifically what is and isn't allowed for that deal.

Legally if the contract does not explicitly prevent an assignment it is still legal to do one.