Instead of taking title, do a prepaid master lease for whatever term (99 years).

A cheap pre paid phone 

Hi Kevin,This is Rick with eRentPayment as a great option we offer for tenants without a bank account is to set up a NetSpend prepaid card as they can enter that like a bank account in our system.  

They offer a CC payment option - I'm not sure if that would allow your tenants without bank accounts to pay online via a prepaid debit card, or BlueBird type card - it's probably a good question for them. 

The BIG kicker was that the contract stated, "DOWN PAYMENT SHALL BE APPLIED AS PREPAID INTEREST ON THE MONTHLY LOAN PAYMENTS."  

All the other fees are your closing costs on top of that......application fee, appraisal, survey, MIP up front costs, points, prepaid 15 months of insurance and property taxes, etc. ....and are totally unrelated to your down payment.  

Yes, if that's your Cost Basis including closing costs excluding any pre paid interest/points, not what it's actually worth.

The large gift of equity (~35%) allowed us to tweak the numbers around to get all closing and prepaids with the exception of only $100.22 OOP (the lender came up with the OOP #, it just had to be > $0)Property details:SFH 3/1, 1080 sq. ft. w/full unfinished basement.Appraised Value: $120kLoan amount: $85kImprovement costs: $3k Based on analysis the property should rent for $950-1050/monthCap Rate: 8%Loan details: 20 yr. fixed @ 4.5% = $538/monthThe lender got me here.

The large gift of equity (~35%) allowed us to tweak the numbers around to get all closing and prepaids with the exception of only $100.22 OOP (the lender came up with the OOP #, it just had to be > $0)The purchase price on the contract was $120k with a gift of equity clause basically stating that no less than 20% of equity will be gifted to buyer to use as the down payment with the loan amount set to 85k.

And if you’ve prepaid for your options and upgrades?