Then the lender's only apply x% of the 1099s.Wife's firm W2 helps, but using combined income still requires the SE treatment.

I am not familiar with the system you describe but can give you a reference for a good well/water treatment company in your area if you send me a private message.

Taking into account your risk tolerance, return expectations, alternative investment opportunities, etc your CAP will very.

Alternatively, the rule can be your absolute, minimum, never to be violated threshold.Screens are not perfect and you will miss out on that unique property that really really only has 30% expenses (believe it when I see it :) but then that's just life.Oren

Also, do you know of any other alternatives to the FHA 203k with the big banks here in NJ?

I usually enjoy working with my hands as a good alternative to the day job. 

Seems like a really good way to get ideas for more elaborate projects.With this one I'm looking more for simple suggestions of what treatment may look good with this type of building, even from people with no design experience.

Plus, unless you are living in your parents basement the alternative is paying rent to someone else who is cash flowing (maybe) on you.

The seller's alternative in this case is to wait for an all cash buyer - or provide financing himself.Third scenario is the seller who wants to get a higher price - higher than market - and uses seller financing to attract buyers who can not obtain financing from outside sources - and who are willing to pay a higher price for a property with "built in' financing.As a purchaser, you should be looking for either (1) the highly motivated seller, (2) a property that can not be financed except by the seller - IF you can fix the problem (hint: a property next to a nuclear power plant is probably NOT a fixable problem!)

The alternative is that you go on working 40 hours per week plus commute time until you die.