I have investigated several out of state markets and have not found anything that I like better than what I am investing in now when comparing overall income, expenses, and the potential for appreciation.

And of course other income like salary income can also make up for the negative cash flow as well. 

An index fund is a better option...eventually, I'm a fan of paying them off and treating them like fixed income, but not now assuming that your financial house is in order and you like owning and managing real estate.

George - I think that the owners most likely to seller finance a portion of the sale are those that have owned their property for a LONG time (potentially looking for residual income) and owners than own their property either "free and clear" (without a mortgage/debt) as they have more flexibility.

Next, I would focus on the income side of the equation.

Does anybody know if my father can prove his income to a lender when I try applying for an FHA loan instead of my income? 

If so, would this allow me to deduct rental expenses below the amount of your rental income?

Hi everyone,I am new to the USA and looking to invest in property with a long term goal to eventually replace part of my W2 income and also pave the way for my children to get a easier start in life.At the moment I am renting with an intention to buy a single family home this year.In a addition I have other cash - not much - that is sitting in a interest bearing account growing very slowly.

A tenant who wants to stay and is on a fixed income is likely to stay a long time which means you won't have excess loss to vacancy/turnover.

That gives me additional income and offsets the risk of loss if I have a longer vacancy once they leave. 25% sounds like a lot, but consider what it will cost them to find another rental in the next 30 days that will allow a three-month lease, plus the cost of moving, setting up utilities, etc.There's nothing wrong with trying to help out a good tenant, but don't hurt yourself in the process.