so, it could be ( am throwing out random numbers) a purchase price of $350K with $10K down, and then 30-year amortization at 6.5% with a balloon payment due in 5 years. 

He negotiated a $5k discount on the purchase price, and I moved forward with the deal.Fast forward to now - after seeing water in the basement, I hired a professional to inspect it, and the news was not great.

Keep in mind, it would be in your best interest to go for as high as 4 units on each purchase to maximize your door count. 

We are considering the following options:-I purchase the property from my aunt – Perhaps we can do seller financing to reduce fees?

Purchase price: $425,000 Cash invested: $5,000 Helped my past client out of a difficult situation.

I am currently helping a VA buyer purchase a home with an assumable VA loan in Skye Canyon.

NOI divided by purchase price gives you cap rate. 

If your mother does not want to carry the note long term, there are GSE renovation loans that can be used for both purchase, rehab, and permanent financing all in one loan.

Invest in a Rental PropertyUse your equity: You could leverage the equity in your current home to purchase a rental property.

The substitute of collateral was more of a scenario where you sold for $155K, and instead of paying off the $88K loan in your scenario, those funds stayed at the title company and were used on a cash purchase happening nearby in date.