@Davis Chem The basics and skills are very relevant, knowing what is vital counts for a lot.

If the LLC purchased the property, you would be added as a partner and income/expenses allocated according to the portion you own.

(we dont plan to sell)At the cash out refinance we will split the money 50/50 and he will use his portion to repay my 50% of the deal and at that point profits will be recalculated to properly reflect the equity. 

If you are looking at larger single-tenant properties, understanding the credit of the existing tenants is vital.  

First, remember there has been some recent changes in the law for selling on owner financing and contract for deed.In a nutshell.. as of October 1, 2010, in NC (please seek a competent attorney to make sure I am correct, this is my interpretation)WRT Lease Options, the new law:•Requires that contracts be filed on the public record, including the name and signatures of all parties along with a description of the property;•Applies the state’s landlord tenant law to the lease portion of these agreements; and•Gives renters the option to cancel lease option contracts if default occurs on the mortgage, and seek a refund for all money paid less the fair rental value of the property.WRT Contract for deeds, the new law:•Prohibits sellers who don’t hold title and are not on the mortgage from selling property under a contract for deed.

And the rate will be higher on the whole mortgage, not just the cash out portion.

Fast forward 7 days, he failed to communicate in timely manner so today I told him I'd like to terminate the agreement but would like him to consider covering portion of expenses and of course he said no and he will send out a statement with outstanding balance shortly.

Investor buyers can make a huge portion of demand. 

I am prepared to walk away if that's the prudent decision.FYI, this is for a Buy and Hold, not a flip.Here are the vitals - let me know if I have missed anything:Asking price: $100K (this is an FSBO, I am working with a buyer's agent)Our offer: $90KEstimated Repairs: $5KClosing Costs: < $1K (we are paying cash)All-in: $96KARV: $125KEstimated Rent: $1,050 - $1,150 (but based on rental comps, $1,050 is on the very low end)Property Taxes: $1,178/yrInsurance: $750 - $850/yrThe property is in a great neighborhood with pride of ownership, excellent school district, minutes from shopping, a major state university, etc. 

What is strange (unverified) is my wife said we cannot pay this portion off early.