Dong Yan I'm in Northwest, Ohio.

I guess I see it as he's dong the project management and earning his 50% that way and I'm just providing the money. 

Had the sellers all buggered up and the sellers start filing complaints at the AG's office  its a mess. think this through put yourself in the sellers shoes.. what if the money does not come in as you think it should.. your dealing with folks ( your buyer) that paid too much or a home and or have not great credit (reason they are dong the deal) these are high risk buyers borrowers.Can't stress enough that I completely disagree with those above who advocate this for folks that have limited financial resources.. they are just selling their systems and or have not really thought this through and are only out for themselves. 

@Dong Yan If you're renting it out you need to be cognizant of the tax consequences of repairing vs. renovating.  

I plan on dong this in the suburbs of Rochester, NY.

As long as you remember that you are basically dong a 100% finance.

Dong Yan First you need ask questions about the borrower - credit score, tax return, employment history, pay stub, bank statement.

Tam- I dong think it will be a good investment. 

Hi Dong,Since you mentioned "profit"  and  you further brought up that depreciation is super high since you were renting it.I will assume the original purchase price was $380,000 and you were depreciating it the past 7 years and now your taxable gain is $116,727 calculated as follows.400,000 - 380,000 - 96,727(depreciation at 7 years assumed brought on jan 1 and residential building) = 116,727.Your agent is referring to section 1231 of the Internal revenue Code where the IRS allows you to DEFER gain on an investment property if you sell and acquire an investment property.The code calls for very strict rules on when you need to choose your new property once your property is sold.

DING DONG?