However, that is more of "gambling" than "investing" IMO.

So to repeat what has already been said, this is either complete bs from your loan officer or a lender specific overlay above and beyond the Fannie guidelines.

That would include proper contract forms and office procedures/guidelines for the brokers' office operations.

Since you are a realtor and many property management companies have specific guidelines on income/credit, I would suggest he looks for a private landlord who may be more willing to work with him and over look his low credit score and base the decision on his income alone..Many private landlord in my area don't check credit they are just concerned with the tenant being able to afford the unit and base the decision on verifiable income/paystubs.

-Eric So true Eric, The VA program is amazing in terms of the loose guidelines and maximum DTI ratios that I've seen.

Until you have 2 years of landlord experience (tax return documented), your DTI will need to be within the guidelines without consideration given to the potential rent (as income).

There are some federal guidelines that say in order to solicit over email you must have a double opt-in and also give them an easy way to unsubscribe from your list.I use Aweber for managing optins from my blog.  

With regards to the 50% I think you may have confused it with the rule for 401k's where you can borrower the "lesser of," 50% or 50k from your 401k and the time frame guideline is another mix up with 401k's that allows you to take a withdrawal from your 401k (non loan) and return it before 60 days.

You can buy properties on the financial guidelines that you would for a flip (70% of value minus repairs) and keep them as a buy and hold.

Who knows, use the current guidelines from your bank for the type property currently used.If there are credit issues now, chances are without handholding and guidance there will be later, perhaps not as bad, but again, interest only doesn't demonstrate the ability to reduce the debt, just to carry it.No legal issues really on this as it is family in connection with an estate, the note must be properly made however and secured.There are usually more issues with these matters and not knowing the goals of the note holders, I can't advise.