Here's an example comparing three different loan originations:Loan A: No interest reserve, but $15K est. interest payments for duration of the loan.

The limits are not high at first, but they can build with good utilization and payment history.

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option.

It ended up okay, but it sure taught her to slow down and get comfortable digging deep into the due diligence.Here in San Diego, I’ve seen the seasoned investors always double-check with a well-regarded local title attorney..I’ve heard there are a few firms around downtown that specialize in smoothing out odball title issues..or a trusted property manager who knows what unique fees to expect.

Quote from @Lolo Druff: I've heard horror stories about awful property management companies and am looking for a REFERRAL for a trusted source from an investor.

 (2) You can also use Lead Swiper to target buyers online.Private Lender Leads: (1) Lead Swiper can easily target private lender leads (2) Nationwide Private Lender database (although this is 1-time payment premium feature, it's cheap), if you want access to capital, quick and easy, it's a no brainer.Hope that helps.

Layer on the ability to invest the funds that otherwise would go towards the down payment and transactional costs and you likely come out ahead in such a short term horizon renting.

I also purchased a multi-parcel farm property in TN where the trust who owned the property was out of money and needed cash to continue. 

In return he will place the down payment, closing costs and IO payments during the HML.If the property is initially purchased by one LLC (Ours) and there is an active loan on the property, is it possible to register half of the property under the name of the investor's LLC as part of our model?

For near term investors, be prepared for sizable down payments to reach a cash flow neutral stance no matter how far out you look in the suburbs.