How does the sellers mortgage get paid and is there a mortgage processor involved?

Basically he has an automated system that does all the legwork and you get paid a fee for being the middleman between a note holder and note buyer.

I'm here for education and will move toward a paid account later.

The $100,000 rehab cost includes all permitting, inspections, etc.All in, I am estimating gross profit (pre-tax) of $35,000 - $40,000.Let me know your thoughts folks! 

So if there are other liens on the property they will have to either be paid off or you would need to have them placed in a subordinate position. 

I doubt you will be able to be paid for it before it is finished.  

Our state lobbyist out of Olympia spoke for a full hour on the socialistic bills and ideas coming out of the city council in Seattle in the Capitol.They are contemplating or have already enacted rules regarding no rent raises when service calls are unresolved, must show cause to terminate a m-m agreement, rent control, 5% capital gains taxes on RE sales (in addition to the 1.7% excise tax), pre-'78 lead inspections, periodic unit inspections, etc.  

In the meantime, I'm still paying rent at my apartment (almost $500/mo), yet the rent paid by the sellers' renters would still be going to the sellers --- I only get the rent money prorated from when I close.  

Regardless, California landlords will have to be much more vigilant in their tenant vetting process, and not overly dependent on the paid screening services.

Let's say the seller gets $20,000 paid each year for 10 years (and we will ignore interest).