1. overestimate ARV2. underestimate repair costs3. trusting contractors4. doing anything DIY or without permits5. not counting holding costs, especially with hard moneyThose are five common ones.

I'm curious what anyone here thinks of the owner financing terms.Listing Price: $374,900Down Payment: 25%Term: FlexibleInterest Rate: 6.25%7-year balloonThe property's net income over the past 3 years is averaged at roughly $42k per year. 

At $200k I'm guessing you would still cashflow even with such a small down payment. 

They send payment via "Cashapp".

You inflated the price $70k but they are only making $50k in payments.

Predatory lease option investors know that and do that by design, they will keep the 5k-10k option payment after 12 months and lease/option it to the next family who is chasing after the American dream.

I wouldn't trust the tenants "contractor".

We found some that would definitely cash flow with a 30% (or more) down payment.

My current monthly mortgage payment plus projected future mortgage payment (2900+2900 = 5800).

Maintain a credit score of 620 or higher, save for a down payment, and research markets carefully.