I would also make sure you have a good amount set aside if something hits the fan.  

You'll charge the applicant whatever the amount is to do a background check.

So, some quick back of the napkin math for the theoretical turnkey scenario you described above:- Purchase price: $2.5 million- Down payment: $850K- Loan amount: $1.650 million - Gross Scheduled Income: $288K- Operating expense ratio: 35%- NOI: $178K- Debt service at 6.7% interest = $128K annually - Before tax cash flow = $47,1999 - Cash-on-cash Return in Year 1 = 5.55%A $47K / year return on an initial investment of $850K seems pretty modest, no?

Low end MFH is overpriced for the current rent amounts. 

Katie, my advice would be to do a cash-out refinance and take out the maximum amount you can for the property to still be able to cash flow.

I had a fair amount of people (between 5 and 10) express some interest. 

There are people who buy a longer term (12 months or more ) OPTION giving them a RIGHT to purchase a subject property, at a certain price, within a certain amount of time, and attempt to either sell the option for a higher price or close on a simultaneous purchase and sale to an end buyer paying a higher price.  

Sometimes we structure a”kicker” where if the property sells for over a certain amount we earn part of that.  

It costs the same amount to replace a roof or furnace whether the house is worth $300k or $30k (assuming a similar size).

.#1 sell back to the owner with a Quit Claim deed and a 2nd position mortgage for the amount I have into the property plus interest and a down payment.#2 if the owner doesn't want to buy it back, I can begin collecting rent since I control the deed in my name at that point.