Obviously the rates and terms are better for you but the portfolio lender only makes money when the loan is outstanding and if they think you are only using them as a hard money substitute (a much cheaper substitute) as a bridge to conventional financing they will not want to do the work it takes to find the loan for such a short time.

Servicing includes the receipt of any money from a mortgagor that is applied to the outstanding obligation.

.$15,300 income- $7,650 expenses 50% rule$7,650 Net Operating income (NOI)$7650/ $36,000= 21.25% cap rate$7650 - $2,142 (financing cost) = $4,708 net cash flow$4,708 / 6,000= 78% cash on cash returnThese are outstanding numbersNow lets get realistic, some things you should consider:Are closing costs in your $6K down figure?

MIP is to FHA loans and that premium can not be dropped as long as the loan is outstanding, new rules.

What if your family member died--would their heirs know this loan was outstanding and would they have known how to collect it?

If for none payment get the outstanding balance because it will likely need to be paid before services can be restored.

I suggest you don't buy a property for $75K with an outstanding $95K lien without a plan.

I'm pretty sure I could hit the following rents: 1/1 - $700 (I could get tenants in immediately)2/2 - $1150The property has a partially finished basement with one extra room on each side, but I've been told these cannot be included in sqft calculations as fully finished.Comps for this area in the past year are 1/1 & 2/2 sold for $203k across the street2/1 & 2/1 sold for $201k next door (my current property)2/1 & 2/1 sold for $180k two doors down2/1 & 2/1 sold for $245k one street overGeneral financial information about us: no outstanding debt besides our current mortgage$80k + $50k income (not including rental income)$20k savingsQuestions: 1. 

There is no outstanding debt they owe me.

Then attack anything outstanding.