@Matthew McNeilI would add to your requirements that the Investor does NOT need the cash flow.If they need the cash flow, then this will NOT work for them.This narrows down the kind of Investor that should follow this strategy.The only added Caveat I would say is that I include your JOB as a cash flow.So if you are making a lot of money in your profession, then how is an extra $100 per month or even $1k per month going to somehow help you?

I'm following!

Not because I was going to follow this package to the T, become a millionaire overnight, but because I was too lazy to bring it to the Post Office. 

@Alexander Fernandez Cap (Capitalization) rate of an investment can be calculated by dividing the property's net operating income (NOI) by the current market value or acquisition cost of a property - expressed in the following formula:Capitalization Rate = Net Operating Income / Current Market Value

They proposed the following with seller financing:Purchase price of $165K$25K down paymentLoan at 7%, amortized over 30 yearsMonthly payment of $875 (actual payment amortized with these #'s would be around $935)Balloon payment for balance in 5-7 years.My question to the BP community is what do you think of these numbers?

With black Friday coming you can usually find these on sale at a big box store. https://www.kwikset.com/products/categories/deadbolts.aspxIf you are wanting a mechanical push button cypher lock then look at Kaba. 

I would advise to make sure you follow the letter of the law and do not deviate from that.

So long as you show you have followed the appropriate steps / the law, you’ll be fine.

Following.

The 203K has built in buffers and follows a process to protect the lender and yourself.