The NPN investing model is properly planning to run the whole course not a portion of it.Further, the notion that you can get your investment back in short order illustrates a misunderstanding of the capital demands that run with the asset.  

Fill this out to the best of your ability and I'll run an illustration for you. 

Everything you guys illustrated makes a ton of sense.  

Daniels list of the IRS criteria illustrates the point that certain groups are going to have a higher bar to cross if audited. 

With the given information (and only this information), how would you illustrate to the seller that carrying will benefit them? 

However, if you finance it and pay the 165k (will assume conventional 20% for illustration purposes), you will put down 33,000 into the deal.  

Despite this weakness, no one seems to have devised a systematic method of calculating cap rates.The reason I brought up the Blackstone example was to illustrate how ludicrous the situation is.

Obviously, you will likely need to drop the loan rate in conjunction with the modification, which is further illustration of the mortgagee's good faith.IMO, this situation with DF and SAFE Act it has potential for more of a problem than TILA, RESPA, HOEPA, Sec 32, etc.

I feel I'm on the right course but I keep hitting road blocks.Paul:My question was partially rhetorical, but I think the 50.9K cash-flow is not correct.Your dilemma above illustrates why we care little about CAP rates when underwriting a deal.  

Another thing I've done is searched through the Homes Illustrated-type publications and found realtors who specialize in investment properties.Good luck!!