It is always easier to do this in the year of purchase because there is a little more red tape involved by breaking out assets after the year of purchase.

If they balk at that, think red flag.  

They are looking deeper into the why's of the applicants score, and as long as there isn't a big red flag they let them in.

The fact that you believe after your mothers passing he can stop paying rent is a huge red flag.

Nick, do a google on Barry Maguire REIN rent to own... he’s doing a course in red deer in a week and if I wasn’t still playing hockey I’d be going.

Let's try to walk through your scenarios here | My responses in bold House hack live in one unit rent free | Very possible in some marketsMake $1k net per month | Usually feasible for triplexes and fourplexes in some markets, but you'd expect to have some value [Note: A deal like this are still out there, but are not the standard)Have 30k-40 equity after rehabbing the property | If you find a value-add play2-4 unit property | Yes, those you can find, no problem (market specific, again) Now, Mario, when starting out in anything (REI included) you have to be flexible and willing to sacrifice because if it were easy to get $1k/month, then a lot more people would be real estate investors. 

One example is someone told me recently that a red toned door was hot now, in their area at least.

To those who think it can’t be done...watch me.The goal is to trade up the four green houses for a red hotel.

Funny how he couldn't think of a thing to say with that red button all lit up right under his nose. 

If they're trying to get you under contract before providing you with any information, that's typically a red flag.