.- If you go with owner financing, you become the bank so you get paid every month but repairs, property taxes, etc... are no longer your problem.You know your personal financial situation as well as the condition of the home as well as rents in the neighborhood so you will have to decide which model is best for your situation.Good luck!

If there is an alteration then it needs a permit to substantiate.In general 3/2 or 2/1.5 with similar gla sf can both be used as a comparable properties.

@Peyton Leal My first comment will be Education. start there. in addition to that look at your financial situation to determine where you want and Can go..?

Have you seen the financial tax records from the owner ??

What are your financial resources?

Right now I’m in the learning stages before we pull the trigger to find that right property in Spring or Summer next year.Our main objectives are:1) Build financial freedom through cash flow.2) Looking to buy and hold rental properties.3) Finding a solid deal with good numbers for our first property.

So there is a good chance they just cut a deal with a vending company and aren't getting a big financial return anyway. 

If the 2nd is compeltely upside down and someone wants to complete a sale then it's in their financial interest to try to recoup any funds that they can.Depending on 1st lien investor or insurer guidelines will determine how much money is allotted to suboridnate lien holders.

Something I learned to late is to convert them to a tax free account and make up the tax and penalty by possibly being able to invest in a place other than the stock market by having a true self-directed IRA.If I was younger and was more aware how things worked I would be much better off when, and if I did, retired early and spent my later years on retirement by having financial freedom. 

Those are the people that I think will either validate or make you re-evaluate your calculations.Try not to make pleasing the seller an issue with financing, If you go trying to support a 10 year mortgage when you don't have the financial cushion set aside or cash flow generated for repairs, CAPX, evictions etc.