After five years you'll have earned $90,000 in rent income and gained $34,000 in appreciation.Buy four houses with $50,000 down on each.

We could offer $210,000 to make it a 1% deal, but I understand that the seller paid for the rehab, would have to pay capital gains tax, and closing costs.Based on the info provided (potential rent roll, the fact that it would be a house hack, and the appreciation potential), what do you think a reasonable offer price is to get them to sell a property they recently bought and put money into? 

Off market from a realtor attempting to gain a listing from one of my available rentals.

Run the comps to see if you would profit from the sale, keeping in mind that you should qualify for nontaxable capital gains.

The key is FULL DISCLOSURE - so that everyone understands the risks, the ways to mitigate some of the risk, and the advantageous to be gained.  

I would NOT recommend that approach at all .. its just as easy to lose your butt as to gain a little bit of equity do all that work..

My wife and I understand that we could give our home to an adult child when we pass away and that our adult child would pay no capital gains taxes on it.But, we have multiple rental properties owned by our LLC and we want to give each our 7 children a property when we pass away.

If I was a newbie, I wouldn't have the volume or the wherewithal to protect the lender's money the way we do.We have a couple of groups that are trying to gain our business and have offered to cut rates below what we're currently paying.  

Unless the numbers are too tight.Although if the Cap Gains goes up to 45% or something, that would change things a lot.....

Loans typically get paid back on a refinance or buy out period but if the property fails to gain enough equity within that period of time it can be a lost deal and painful.I would advise you to look into traditional or Non/QM financing where you use your credit score or income to buy the home.