It's the concept of buying the debt attached to the mortgage rather than buying the house. 

Hi KyleThe way most real estate for sale is priced these days there’s little to no cash flow after debt service with 25% down - borrowing a down payment would put the investor in a negative monthly position. 

Speak with lenders - and consider that although they might agree they could lend to you today - they might not be able to when you need the loan.Unless the existing debt has no due-on-sale provision, there will always be a risk of the underlying loan being called.If it were to be called due:1.

You'll likely also reduce your cost of living by moving to a stabilized apartment.Depending on the cashflow and debt paydown, you can use this strategy until you've built enough equity to reinvest.On the other hand, getting into a multi-family after refinancing will also help you build substantial equity to rinse and repeat in the coming years.

Quote from @Monty Alston: Quote from @Travis Timmons: You need more income, not more debt.

So, if you put in 20K, you could set the bid up to the amount of the 100K total debt(80K existing + 20K additional) to ensure that the property reverts to you as the lender.

It is small multifamily with 30 year fixed rate debt. 

You can lend at higher rates or look for debt funds that are taxed differently.

The denominator in the calculation is your capital/equity and with no debt the return on your existing equity is low.

Do they have any debtJust because you are a note fund does not mean you do not have debt.