He wants the proceeds from his home sale, to be used to pay off the $65k Reverse Mortgage on his Parents' home.  

DSCR 1 ratio will get you best terms depending on your credit and LTV for many lenders who specialize in DSCR loan products which in many cases isn't banks or credit unions as they don't feel as comfortable with the products as conventional loan products. 

The owners are feeling pain from their property it could be the children who inherited the property, poor management leading to deferred maintenance, vacancies, and many other inefficiencies.Most owners in this spot are looking for a way to end the pain they are feeling and many will take a path that solves their problems and gives them something in return to justify the sale.

Profitability can also be enhanced on a sale (sometimes) if we choose to provide owner financing or wrap financing.  

I just sold a spec, I built a house for my self last year and finished a spec this year, I bough the lots at tax sale, and I was the GC, HVAC, Tile, Flooring, Cabinet, Painter, and Misc. guy, made a nice profit, but the crappy part is taxes, its like a flip, short term gains. good luck!

In most of the 35 or so deals i've been in, i've had little to no taxable distributions until year 7-8 on our typical 10-year hold period, so a 10% cash on cash return is an effective 13.33% for example when you compare to other taxable returns if at 25% bracket,        The syndication next can roll the sale proceeds into another larger investment, like-kind, 1031 exchange and not have to pay any long-term capital gains taxes, about 20-23.8% nor any depreciation recapture tax about 25%.

The folks were about to lose it to a tax sale and so I bought it even though it was not in my geographical area.

Estimate the potential profit from the sale of the property, taking into account the current market value and the cost of prepayment penalties.

Compared to the Pittsburgh and other surrounding areas, Beaver generally has a lower sale price compared to the potential rent values.

Purchase price: $500 Cash invested: $1,123 Sale price: $25,500 A seller got behind on taxes for this 1.4 acre parcel in Colleton County and it was sold at auction.