But even the staunchest buy and holder has to realize that one roof can wipe out years of income.   2.

[3] Will buying the 1st loan trigger a foreclosure by a 2nd note holder, meaning will I need to pay off both 1st and 2nd to assume ownership; would this differ by state such as Texas or California or Florida (???)

Thank you for your contribution, greatly appreciated.In the 100% scenario, the seller would be 1st position lien holder - in the 20% carry they would be 2nd position subordinate to the bank debt, which is a major difference.

Private lending is passive but in terms of taxes "ordinary income" and you cannot cancel out with passive losses that you get when you are an equity holder of real estate. 

All 4 people on the voucher are on the lease and no one else allowed, including the voucher holder grandma, the 28 yo daughter and her two kids.  

All the housing agencies send their voucher holders there.Just be forewarned - many S8 voucher holders don't want to pay application fees, provide any documentation, expect you to fill out their S8 paperwork (!)

If the first position forecloses as a second position lien holder you have the options for recovery.

I was wiped out as second lien holder which got me to thinking about legitimetly becoming a private lender.My question is if I already make 7.5% off a few of my 250k condos, then how does private lenders (not hard money lenders) make money off charging 7-8% returns when they can just purchase condos in cash for the same CAP rate?

As others have said - start a conversation with the lien holder(s)...

This leaves the policy holder with that cost.