This is eerily similar to the unsecured loans I've made and haven't seen a payment on in over two years.

We have an LOI accepted on a property where the seller is going to carry roughly half of the 25% down payment.

I also am considering buying another one but we don’t have the down payment.  

Like should I have a folder on my laptop for the tenant and keep a copy of each payment I receive from them?

I have a 700+ credit and willing to make 25% down payment.

if you never miss a payment and the bank doesn’t call the loan due.

In your case (TX), and assuming you want preforeclosure leads, the rough process is a). the borrower is sent a notice of default after missing several months payments (usually 3m).

I have been trying to save up money but it is not near a down payment for a traditional loan.

.: Quote from @Travis Biziorek: Hey Amit,Section 8 is definitely appealing to a lot of out-of-state investors because of the perceived stability of government-backed rental payments.

However, if they are still considered a short-term guest under lodging rules, you may have more flexibility, though the specifics can depend on local regulations in Seattle.Since this can become a legal gray area, I recommend documenting all agreements, payments, and communication with the guest.