So, even if the loan amount is the same, and even if the interest rate is the same, with the terms mirroring the underlying mortgage, the seller will have (1) recourse to foreclose if the buyer stops paying (2) with payments going directly to the seller who then sends payment to the underlying lender the seller will know if and when the buyer has not made a payment, in which case they can choose to make the underlying mortgage payment and proceed to foreclosure, (3) the seller’s legal position is enhanced since he holds a debt security interest in the property (4) the seller may be able to wrap a higher amount than the underlying note and or a higher interest rate and (5) the seller’s credit position may be enhanced since he has the asset of the wrap note offsetting the underlying debt.  

. $1100 for the unit ....do you have an outlet already available that will handle the extra amp draw?

One other thing that people in their 60s can consider is - if you are planning on taking Social Security and making passive income part of what you live on, rental income may not count as income against your Social Security benefits.

Quote from @Jordan Kaylor: I'm new to real estate investing and have secured a HELOC on my existing home.  

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

You are not a borrower, you are not liable for the debt, you may need to sign the security instrument to allow the mortgage to be recorded, but this does not change the above statements.

If you can purchase this home with private money or seller financing and get a $110k loan, then you could do a rate/term refi right after so do a 90 or 120 day note to secure the property and get it in your name, then refi into long term debt using the full appraised value. 

I've collected thousands in security deposit from my guests who've caused damage.

-secured card is a smart start.

You will receive the security deposit in Checking but then transfer it to Savings.Savings: Hold the deposit here so it's separate from operating funds.