Add in your principal paydown and you're getting 15 to 25% returns on that money.Why fix it if isn't broken.

Going forward, the rents would cover the debt service and we would make extra principal payments to get it paid off.

Can the tenant-buyer upon exercise of his option ask the bank for a loan remodification since he is the principal homeowne now?

I'm not a wholesaler or an agent, but for all that work and expense wouldn't being an agent be just as profitable but with less liability since you wouldn't be a principal in the transaction?

Expenses would include everything except the principal and interest on the loan (even taxes, insurance, and property management).Calculating your loan of $21,600, 5.45% interest, @ 15 years is $175 (principal and interest).$325-$175 = $150We arrived at the same number, but I think we've done it a different way that should help you evaluate others deals in the future.

Evan, I think you'd find it difficult to cash flow this property.If you use the 50% rule that states expenses (everything except principal and interest) over a period of time will equal half of the market rent per month, you're looking at $1935/2 = $968 as your cash flow after expenses.You could save some money (~8-10%) by managing this yourself, but my hunch is that with that old of a property the upkeep and capital improvements will be higher on this deal than a newer property.

It's illegal, even if it's within your scope of acceptable practices, principals and ethics.

Andy Collins Using the 50% rules 1500 turns to 750 - principal and interest equals $40!!

My parents taught me that lesson at the age of 12 and I attribute any success I've had in life to that principal first and foremost.

The death of a principal won't kill the corp structure but you may be dealing with heirs, so consider how either party can get out and assume business management.Good luck...