The didn't live within their means, accrued a lot of debt, and it eventually resulted in them not paying rent and being evicted.Consolidating debt reduces their payments so they have more money available, but it doesn't automatically teach them to live within their means.

All the off market sellers that we worked with wanted 50% or more of a down payment with seller financing.

@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

(Down Payment Assitance Program).

I was pleased with how the situation was handled and that you refunded the technology package payment.

You should really do the research to understand your market before you can trust a software to appropriately set rates for you.  

If a single partner pays the mortgage personally, the payment must be treated as a contribution to the partnership, as specified in the partnership agreement.

Take the larger down payment and put it into something bigger, which lowers your %equity in the property but still keeps the $equity and the cash flow is now going into the larger property.

While down payments and principal payments aren't deductible, inspection fees and other acquisition costs can be added to the property’s basis for depreciation.

@Francisco Pineiro To protect yourself when working with contractors:1.Start with a Clear Scope of Work (SOW): Ensure every detail of the project is outlined in writing, including materials, timelines, and deliverables.2.Use Milestone Payments: For a $40K rehab, consider this structure: 10% upfront, 30% at halfway completion, 30% at 75%, and the remaining 30% upon full completion.