Thank you @Jeff Copeland, for the reply.I guess then what puzzles me is listening to the podcasts it sounds like some folks are and some are not incorporated. 

I am somewhat puzzle by potential tenants suddenly becoming "very honest and upfront". 

Further, the loan process will require you to produce tax returns, which will also show evidence of this loan.Nevertheless, owner financing can be a reasonable option.I had to build a spreadsheet to puzzle this out.

Quick recap: the rates and terms are primarily driven by three main metrics: Loan-To-Value (LTV) RatioDebt-Service-Coverage-Ratio (DSCR) RatioFICO/credit scoreWhile the rate you’re going to be quoted is going to be mainly driven by those three factors, there are several other pieces to the puzzle that can also change the terms offered.

Or do any # of creative deals that can help out the people that have the house now Get them a little more money if they hold the house under contract wall you find a rehab person that wants to move on it and you take your cut for putting the puzzle together I have heard there are new laws in some states on that type of deal..

That's a five year long process.Just because they didn't pay, doesn't mean the lien got extinguished. on RARE ocasions, some lenders were reconveying title on junior liens that they charged off but most of those were compelled to do so under settlement agreements with the 50 state attorneys generals with a national settlement from a class action against the big five (Chase, City, Wells, BofA and I think GMAC).I think i'm missing a couple pieces of the puzzle.

I wasn't sure if I should announce all that on this public post, but I know it's a big piece of the puzzle that puts me in a good position.  

After asking him if he was a landlord he was really puzzled.

All three of the pieces of the puzzle are important.  

And that's just a small piece of the puzzle of course......I'm guessing this is in a pretty decent area since you'd be putting some massive funds into this for renovation?