I don’t buy it but remote possibility because seller is older and not very “sophisticated” at all about this stuff based on our personal experience.

With an investment property, sophisticated investors figure out what they want for a GRM, or NOI, or a cap rate, or a cash on cash return, or instant equity, and THEN make their offer based on the numbers they want.

But if you consider the area restrictions and the needed sophistication of the investor it may be considered less ideal for some.

You are able as a sophisticated investor invest in certain apartment syndication deals, however you are limited it doesnt mean you are not allowed.

Stop thinking small, once you have the 200k in cash, find a sophisticated investor partner who will also put up 200k (or more) and you can both own a 30-50 unit apartment complex that nets $100,000+ per year.

Sophisticated and accredited investors use Fannie Mae and Freddie Mac Small Balance loans, which are non-recourse. 

The only other way is to set up a payroll system, make everyone an employee, have workers comp, and have everyone's taxes taken out immediately instead of at tax time.

A sophisticated investor would NEVER buy an investment property in their personal name, they would purchase it in an LLC.

We don’t need proof where payroll is deposited, we do need tax returns and finds to close need to be deposited by in a US bank 10 days before closing. 

More sophisticated investors realize their not paying tax against THIS years income, their paying it against previous years income.