If the seller has equity at the closing table part of the proceeds could go towards the utilities being caught up.

Focus on the actual deal first.

Considering that, you are likely going to see appreciation year over year, which essentially will be additional equity you'd capture just by simply living in the home. 

These were investments, the value of the assest are there, its the liquid that ran short and had to resort to credit cards to fix up the propertyYou spent $50k from savings, borrowed $50k from a 401k, and are paying it back over five years at around 7.5% interest, then borrowed another $40k from credit cards and are paying that back at around 8% interest, maybe more.

the cash flow you are referring to, are you attributing that to the $900 difference between the PITI and the gross rents?

Welcome to the Forums, Brandi !

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

In short, you ride the 'coattails' of the previous owner's taxes for the first year.  

You're in the right place.

Similar to what Patrick stated - most have ITINs and have seen a lot of loans like that and those are sold many times on secondary market. if not I know people who still originate I would say they are tougher to sell on secondary market but there are still buyersRe: jay comment - price of notes has doubled over past five years on many loans - especially defaulted or loans with some hair too them.