Option 1: Lower Down, Higher Rate (10-15 Year Term)For the Seller: Steady cash flow, better return than banks/CDs, avoids capital gains hit all at once.For You (Buyer): Lower upfront cash, keeps more liquidity for operations, long-term financing stability.Offer Price: $2.2M (Full Asking Price)Down Payment: $220,000 (10%)Loan Amount: $1,980,000Interest Rate: 8% FixedAmortization: 25 YearsTerm: 10-15 Years (Negotiable)Monthly Payment: ~$14,846 (P&I on 25-year am.)Why It Works for the Seller:They get a consistent $14,846/month income instead of a lump sum that could trigger taxes.8% return is way better than typical bank investments.Avoids broker fees (~$100K savings).No property management headaches—just collects checks.

Of course you have a big winner here and there but that is the average if you are consistently buying. 

(The vendors give a quote, usually discounted for being a PM client and if I approve I pay amount, no extra fees/surcharges/etc.)For this I get GREAT and immediate service.

It sounds like you've been more than understanding and accommodating with your current tenant, but it seems that her financial struggles and consistent late payments are creating ongoing issues.

And while nothing is foolproof the most consistent method of finding good vendors is relying on OTHER real estate investors that have worked with those vendors.

With the potential for construction delays, increased renovation costs, rising interest rates on the HELOC and final refinance on the DSCR loan, being 100% leveraged in a deal feels risky.Most of the deals I have been 100% financed in have required me to dump a lot of cash into them consistently because there is no margin between debt, cost, and revenue. 

I was okay with consistent cash flow without much appreciation especially when considering a portfolio of property as opposed to buying one unit at a time.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Marketing strategies that work are used consistently for an extended period of time, target 15,000 + people for each marketing event, contain offers that are relevant to the target audience, and take advantage of technology before it’s overused.  

My portfolio consist of duplexes and single family homes, and one STR, however this will be my first renovation other than minor touch ups.