The downpayment will be financed by a private lender.Mortgage Payments: -$350 to private lender ($60,000 at 7%)-$495 to seller (170,000 at 3.5% interest only)Monthly CostsProperty Taxes: $833Sewer: $100Insurance: $120Lawn Care/Snow Removal: $100CapEx: $100 (new roof, windows, everything is in good shape)Vacancy (5%): $150Repairs (5%): $150Total: $2,398.17Monthly Rent: $3,000Monthly Cashflow: $601.83I am still unsure of how to approach the tenant who is paying $1,800 instead of the written lease terms of $2,200.

Write down all the different approaches, research the pros and cons of each of them.

If I understand this correctly (and I'm going to go back and re-listen to #301)… your approach is genius.

Looking for advice on how to approach this, I have no problem making the trip for a week or so.

My approach was to purchase and convert the building to all HUD tenants for guaranteed and timely rent payments and so long as a property management company would handle the day-to-day it would be a fairy sound investment. 

Today I was at the property dropping off some materials, and the tenant in the unit we have done little improvement to approached me.

You may also consider a more passive approach or partnering if you have others in different areas that you can trust. 

. - What was your approach in making a potential source of capital aware that you are looking for partnership? 

This article by BP's Brandon Turner is a great place to start to get some ground-level understanding of how to approach a Seller Financed deal.The Definitive Guide to Using Seller Financing to Buy Real EstateIt sounds like you have a really great opportunity with this seller, and you are smart to make sure you handle these first deals with them professionally and knowledgeably.Start with this article and let us know if you have additional questions that apply to your specific opportunities on these properties!

Are there any legal reasons not to go with this approach?