It is simply a way to estimate the capital, expenses and vacancy the property will incur over the coming years.Two ways I will agree its crude.

He could simply loan the money, you could form a partnership and he could loan the money to the business and share in the income as well as interest back to him on borrowed funds.

If you can assign the contract, that is easier, so you lock it up and then simply assign the contract to another for a fee.

One side effect if your entering the market today and starting out- its very hard to cash flow.

Congrats on getting your first property.You have entered into a partnership in regards to the property.

When it comes to REOs, it may not be that the min acceptable bid was not hit, it may simply be that there were 2 or more offers and the bank is countering the multiple offers by asking for the best offer, trying to fetch the highest price.

I see too many young people coming out of school with crippling debt...not a good way to enter the real world.

The tenant "doesn't believe" I own the home, and after serving him a 24 hour notice to enter for inspection, I was told that I will be trespassed from the property...

Removing it is simply torture for me, which is why I have removed myself from that task, I feel like I added 10 years onto my life by making that decision.

If these are lower income tenants (say rent is < 1000) then I wouldn't put it into the lease, since they simply won't fix anyting.