Your contract is evidenced by the spreadsheet, payments, and likely other communication about the work.

He *seems* to be making an effort to square people away and talks all sincere, but everything we've seen to this point I won't trust a word of it until my balance in full is wired into our checking account.

Your minimum down payment amount for a 2-4 unit will be about the same as an often required 20-25% down payment on a co-op.

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

so i had zero debt or interest payments on it while it was being fixed up. 

. - Definitely not in a spot to have full time people yet and even if I did I would need someone I trusted to manage them which only adds a further cost to things.

Quote from @Lolo Druff: Just like turn signals, you should always trust, but verify that the seller is telling the truth.Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).

As mentioned elsewhere, breakeven on cash flow is not the same as break even for taxes.Let's make some assumptions:Rental income = $1000Mortgage payment = $400 - but $300 is interest and $100 is principalOther expenses (repairs, advertising, utilities, etc) = $600Depreciation = $250The above scenario creates a break even from a cash flow perspective, however the tax scenario looks like this:Rental income minus the mortgage interest (principal is not deductible) minus the other expenses minus depreciation looks like this:1000-300-600-250 = $150 LossIf your income is over $150,000, then you cannot deduct that loss, but you can roll it over to future years. 

Luckily this was a super cheap property so I could afford the additional down payment.

-I'm fairly careful with communication , but again, I know doing business online is way riskier, but I want to ask: Typically, I would trust someone who seems very in-depth, informative (gives statistics and numbers), and basically would give me thorough steps (including worst-case scenarios and what would best fit my situation)^^would people who have experience say that even with the above, some agents/lenders/PMs would still be sort of out to get your money and do a lousy job?