Purchase price: $115,000 Cash invested: $42,000 Sale price: $168,000 Unfortunately, we bought this property as a buy and hold property, and our research led us to believe that this neighborhood was up and coming not in a bad area of Jacksonville.

We don't want to bring on every owner or every property unless they fit within our target market, so, I do the far majority of the sales - this is our check and balance.

Quote from @Patrick Roberts: Angel oak and A&D mortgage are two of the bigger lenders that I know of who will do 2nd's on investment properties as of a few months ago.

Bit of a long story, but my partner and I are trying to purchase a property from a family friend of mine and we're having trouble locating the last seller.

What type of properties are these and what do you mean by it not being "cost-effective" for you?

This is how banks verify property owners maintain insurance.

@Devakumar Sai Chinthala There are income limitations for passive losses, you should check with your tax professional.What will the property taxes increase to after you buy the property?

If you are living there you can keep the 4% rate.If you are not living there you can rent it out to pay for the property taxes. 

I've sold properties off market and I will admit for the most part it has been fine.

Another alternative would be to buy the property yourself, keep the mortgage in your name but have your daughter on the title.