Reinforcing what others have said, you will have a substantially more fun time in Houston if you live in/near the West side of the 610 loop.

Thereafter, buyer makes payments to seller as set forth in the promissory note.Here's why I think the foregoing rarely happens in residential deals: (A)  It requires a seller who either owns the property outright, has a very small balance on their mortgage, or has a substantial amount of other liquid assets such that they could have already paid off the property. 

I have a couple of properties, substantial savings but property #3 has eluded me for 2 years now. 

Rooms that are not included in the above-grade room count may add substantially to the value of a property, particularly when the quality of the finish is high.

Most of the houses we sell are in need of substantial repairs and are inhabitable "as is". 

This leaves very little window for an effective "Subject To" deal.The other factor to consider is that mortgage arrears (historically <1%) and defaults (historically <0.5% ... less than 0.3% in parts of the country) are substantially less than in the U.S.A.  

If you are providing an ARV, you should be substantiating where you got your numbers.

This happens...it’s the risk you take in development but doing all the due diligence you can on the front end mitigates that risk substantially .

In BRRRR, you buy a distressed property or at least one that has potential for substantial improvement, rehab it to build equity, rent it for positive cashflow, and then refinance out what you invested or more to have funds to do the next deal.

Either way -- I suggest you read the individual leases (not just one as they may be substantially different) to see how you can be in a position to get rid of the chronically past due if needed as well as frame for a future need of getting rid of the gentleman who is "getting back on his feet" in the event that he stumbles again.Good luck!