The higher you go in price, the ratios get too hard to make it work without leaving as much money in the deal as you would a standard down payment.

Try not to have your PI payments exceed 50% so assuming 50% expenses and short and long term cap x you might be safe.

However, I just received a text alert that I must agree to their new Terms of Service by 10/7/24 to continue processing payments. 

@Muhammad Kashif to avoid interest related transactions:1) Buy & hold rentals - you make your money back via rental payments.2) Funding flip deals - instead of lending at an interest rate, you could lend for a percentage of the profits on the sale.

We financed this deal using a conventional loan, and taking portions of my 401K out to make the down payment and stage the house for STR and MTR.

I made 36 payments as each job was done.

that is potentially high risk for both of you if the bank calls the loan.and if you don't have money for the down payment, what happens if there is a major expense?

But the owners want the money now and not have to wait or they would rather keep the rental property because they would bring in more than what my payments to them would bring.

Consider an Installment Sale: By structuring the sale to receive payments over multiple years, you can spread the capital gains tax liability over time, potentially keeping you in a lower tax bracket each year.11.

This of course, would need to be defined in their lease agreements and would also require more work collecting those payments.