Hello,I am in the very early stages of talking to a couple of different property owners about the possibility of buying their existing rental properties and them carrying part of the total purchase price as a 'second note' (assuming other lenders would only want to lend in the first position.These properties range from 6 to 8 units owned free and clear, a 6 unit with about a 40% LTV loan on it, and some single families that range from free and clear to 80% LTV loans.These could be done in a SDIRA, or not, depending on the benefits to each way.

A reduction might be better as you do not know the standard of repair an existing seller will use on a property.

@Joseph Tarallo , I simply went into the bank where I have mortgages and asked to apply for a line of credit on a rental that had no existing mortgages.

In this example case the lien is extinguished and no unsecured debt would not exist either.The senior mortgagee would still have to foreclose.

AFFIDAVIT OF OCCUPANCYApplicant(s) hereby certify and acknowledge that, upon taking title to the real property described above, their occupancy status will be as follows:Primary Residence - Applicant(s)shall occupy, establish, and use the Property as Applicant(s) principal residence within 60 days after closing and shall continue to occupy the Property as Applicant(s) principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.That should clear some things up, good luck.

Look at schools, housing stats for that town, upcoming competition, vacancy rates of existing competition, nearby jobs, retail, schools, ect.

Existing thread

Ive been told to stay away but keep reading otherwise....Sure appreciate any insight here....I know many variables exist but what can I expect for market rent for a nice 3/2?

@Lync Jones sub2 means subject to the existing mortgage.

However, the 1% rule mentioned in various books didn't exist in the Bay Area at that time.