Downsides include the usual downsides of partnerships :-) Also a bit unsure about approaching family and friends for this kind of deal in this economic climate.

I would like to approach him with an offer to purchase the house with a 203k mortgage and we can move in and rent the property from him until we can get a mortgage at a decent rate (either this April or next).

Yes, there is plenty of irony in this election.It is going to be an interesting and incredibly profitable time for some of us.Congratulations, PE BO.

Lastly, I fetch a 10% Cap rate on the house, which I am very happy about.The market for SFH's within 4-5 blocks of campus is incredibly competitive.

Also if I did this approach could I use the 1031 exchange?

The only drawback with that approach is that I would need to find someone I can trust and do business with.Any insights are appreciated.Thx

Right now my strategy is to get 25 properties into my portfolio free and clear as the "foundation" to my portfolio, then I can approach the bank from a very solid equity position.

I actually wholesaled 26 properties in the last 2 months, but I also have an incredible company working with me.

I am a strong advocate of the simple approach - use the MLS.

Most people find having a complete plan of attack for how they are going to approach their investing to be the best way to overcome fear and hesitation.