@Daniel M Gibson sticking to fundamentals and your "gut" is always the best course.Unlike 99% of the investors on this site, my take is that investing for cash flow is a bad idea...it creates a jaundiced view of how things work...meaning that investing is about controlling assets as wisely as possible...not immediate cash flow.I use seller carried loans routinely because I'm in for the long haul (and I don't need rental income to survive)...as long as the purchase price makes sense, I could care less about income...the concept is debt paydown and future equity.

But that $155K basis (141 acquisition - 6 depreciation) carries forward in some prorated manner. 

In fact I would be asking if he is willing to carry even more of the cost. 

The market rent is typically at the max the property can carry.  

That’s called subject to, and it carries a lot of risks for the seller, and for you.

So lets go with the idea the owner is carrying the mortgage and will pay it without effecting the deal. 

I’d like to transfer them to an LLC however from what I understand if a property still carries a loan and title is transferred to an LLC the lender may exercise their right to require the loan be paid in full.

We simply asked the owner if she would carry the note.

The carrying costs for the house are not cheap considering the interest payment, utilities, insurance, and taxes. 

If this was 1980 and I had to carry a calculator to do the math like a nerd, sure I'd be on board with the rules.