He will get around $3,100 tax free Base housing allowance and will have $150,000 he can put down.  

Creative financing can help sellers make more money, solve pain points, gets them the money they need, and help them avoid a high tax bill.

@Felicia NituIn addition if you actually want to realize that value, you need to count another 5% for selling costs, and the taxes from the sale.Assuming a 20% capital gains tax, your total ROI on the above scenario would be about 12%, even with the numbers you were using. 

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

NYC laws around rentals—especially short- to mid-term—can be tricky, so you’ll want to avoid any compliance headaches.The biggest challenge with this plan is finding a rent-stabilized apartment that makes financial sense and actually gives you breathing room.

Are there issues that you think you should avoid regardless of potential for discount? 

-While rent would be more expensive month by month, the idea of being able to take my equity out of my home and also being able to reduce annual repair costs, property taxes, etc. does seem appealing to me. 

Some people use their IRA to fund fix and flip's and keep the profit in them tax free. 

His information is faulty, his approach is to "overleverage", "zero down" and in my opinion the information he leaves out is either lack of experience on his part or intentional deception, neither of which I am willing to be associated with.He leaves out very important information, like what my buddy recently posted at Using Subject To, to Get "Free" Properties - A Quick Guidelinehttps://www.biggerpockets.com/forums/311/topics/1188416-usin...We teach even the downside of Subject To and how to avoid the pitfalls.

I would be beneficial to determine if they are other aspects of the property that make it a worthwhile investment (tax, appreciation etc).