If the property is not cash flowing and is due to your mortgage carry, it will most likely require a cash buyer to work (or close to it). 

I am scared of servicing two mortgages in the case of a vacancy.

This property is gonna cash flow over $1000 a month after we're all said and done with utilities mortgage and more.

though; (1) there are tenants in the house on a two year lease (payments are enough to cover mortgage payments), and (2) the Seller wants the option to buy back the property in two years.

You would be 100% leveraged, and you'd have 2 separate loans (One HELOC and traditional mortgage).

I actually like Spam though.Health care is both very inexpensive and for higher end issues, non-existent. 

So in 3 years if you bought a $150,000 house, you would likely have accumulated $12,000 -$20,000 in equity on your $30,000 initial investment - not to mention your tenant paying down your mortgage, plus some really awesome tax advantages (3.3% depreciation, etc.), plus hopefully some cash flow!  

Cash invested: $65,000 Sale price: $97,000This property was a very early lesson learned in private mortgage financings for me.

Starting with small multifamily properties 2-4 units is a solid move, plus if one unit is vacant, the other can help cover the mortgage.

We want to detail the responsibilities, capital contributions, profit and lost sharing percentages, decision-making process, have dispute resolution methods, and exist strategies.