@Robert BladeIn general, lenders want to see monthly housing debt of no more than 28%-33% of your income and total debt of no more than 38% of your income.The rental income should be ~80% supposedly your current rental income to account for vacancy etc, If you are government employees guarantee for perpetual income want to work another 10-15 years you can be a bit aggressive on total debt. 

There's no guarantee you can find something good, but it's worth a look.

If it is at market rate, and they pay after the 3 day pay or quit, I'd get a lease in place with the HUD office to guarantee you that income for the next year.However, if your intent was to get out of HUD and get market rate renters in there, then I would non-renew. 

In most markets speculation on appreciation is way too risky.With no guarantee of future pay out having no expectation of income does not make it a worthwhile investment.  

Sure, sometimes the paperwork is extensive but guaranteed money on the 1st of every month is great.

(the down payment is completely relevant to the seller)Interest- 7% is pretty standard...it's a premium paid for consideration in carrying the noteAmortization- 30-years is typicalPayment- I would look for the actual P&I based on the amortization schedule, but again, this is relative to the sellerBalloon- 48-60 months is common, and this is completely up to the seller as well (If sellers are leary of the time frame, I always agree to attempt a re-finance sooner...but no guarantees)Some extras:I always pay the listing agent's commision based on the transaction price...otherwise, you can structure a partial commission the first closing and a second commission when the balloon is due...waiting 48-months for the rest of your commission is crazy, thoughWe pay all the doc prep fees (note/mortgage/amortization/assignments/personal guaranty) Typically around $300, so not bad.- use the attorney at title and add it to the HUD-1We use a clause in the note that waives the right to defend a foreclosure in default, so the property returns to the seller without contest (varies from state to state I imagine)We also pay the sellers closing costsAll of this stuff is negotiable...you can always push things with these...like lower the down payment and have the buyer pay all your clients fees and your commission, etc.Give me a shout if you want to chat more about this topic.

@Brian Ellis For the tenants you declined that couldn't quite meet the 3X rule, did they have someone to guarantee the lease on their behalf?

There are no guarantees with lending.

Also, feel free to ask to do a background checkThere is a lot of trust that needs to take place and no way to be 100% guaranteed they are going to act with integrity if something goes wrong.

Roughly calculate your hourly comp rate for last year, estimate hours per project tasks, a rough calculation for getting to your "number" then decide how much leverage you have to ask for it as guaranteed fees vs. risk as profit sharing contingency, etc.