Quote from @John Friendas Quote from @Patrick Roberts: If you are on the note or personally guarantee the debt, then it will affect the liability side of DTI, regardless of whether the lender reports the loan on your personal credit.

Personally, I'd go with the As-Is scenario.

It would be tough to rely solely on our own funding.

Tell me - someone selling their home to your son, Subject-To - is this a person who has made good life choices? 

Me having several thousand good reviews help, but personally I would not book a property with 0 reviews. 

Quote from @Daniel Windingstad: Quote from @Obed Calixte: Some people have the personality, processes and systems & time to self manage, some do not.

Then if/when another good deal comes up, you can approach a lender and look at leveraging either of the properties in order to fund the down payment of the new property.

I was thinking if I can talk to my neighbor about sharing the cost (I, the landlord, personally provide labor and my neighbor provide material (e.g. fence pickets)).

I spent many years managing myself and personally collecting rent checks. 

In addition, you want a separate bank account for the rental property to separate it from your personal accounts.