If you buy each rental at only a $20,000 discount, then with 100 rentals, you have $2,000,000 in equity even without a single penny of appreciation or considering any principal paydown of the mortgage by the tenants.Buy a rental for appreciation?

As another person stated, there's just not enough information about the scenario and the individual needs of the borrower to determine if an interest only loan is appropriate.There is no restriction on an interest only loan preventing a borrower from making principal reduction payments.

By doing so, you have some idea of what price range you looking at.When looking at pre-construction projects as investment opportunities, I’ve noted that most “Hard Money” lenders state that they want Verified Assets (6 months Principal, Interest, Taxes, & Insurance) when qualifying for 100% financing.

With the rental income being $1600/month, figure operating expenses of $800/month and Principal+Interest of $785/month.

I would not markup a service or product that's already at market rate.Agree with the second paragraph, and it should be detailed as to what is and is not included, but really, management includes any and all aspects required to promote, maintain and maximize the profit for your client/principal in your agency relationship.The first paragraph is clearly not acting in the best interest of your client/principal or employer, the reason an owner hires a manager includes their knowledge, expertise and ability to maximize profits for the owner.

Should I continue to market in his town based on principal or should I take his advice and stop marketing there?

Then determine what the principal balance would be at the time of sale.

@Jon AndersonI'm not saying the people who PM'ed you are not offering you good deals (I have no idea) but I would say, get close to principal players.

You could use to mimic the principal paydown of a wraparound mortgage buy giving your Buyer rent credits toward the purchase.Any advice or pitfalls I'm not seeing?

If she's eligible for the DOJ loan mod, they will even forgive additional principal to match the value of the home.The assets could hinder her ability at being approved, but since she is 27 months behind they will likely not request bank statements.