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Bob Lowry The 2% "rule" is based around a 25-50K house and like Jon said assumes a 6% interest rate, so obviously as you start messing with the basic concept it becomes skewed and doesn't effectively work anymore.

On top of needing a lawyer, I kinda also need a hug right now, and a virtual one will do:)

I guess I just felt like water in an old basement when it rains heavily obviously doesn't negatively effect the structure of the home since it has likely been wet since 1938 ...and if it is not a living space, why does it matter to a renter?

Hi Mathew, thanks for asking about in effect the tax treatment of non refundable option payments, rent credit etc!!

As it stands now if you were to proceed and she stopped paying you would end up with a tax lien on your property you now have to pay effectively setting you up to pay 55K for the property.

This is very revealing and effective.

The article I co-wrote with him can be found by following this link:http://www.biggerpockets.com/blogs/2997/blog_posts/22522-8-habits-of-highly-effective-inner-city-landlords

A rehab and sale can take well in excess of 4 to 6 months.Lastly, lawyers and professional organizations can be expensive and eat well into your capital.

I still have a BOA mortgage w/ 21 more years on it (technically, but I know I'm ahead on that) that I plan on keeping and paying down as quickly as I can afford.My friends have almost no money to put down and I'm planning financing them.I have a lawyer who I've used twice in the past for traditional purchases (one bank financed, one cash) and she assures me this is not a difficult thing.My friends have agreed to my asking price and my terms of the loan.We are getting a small premium on the sales price of the home and are loaning them the $110,000 at 6% over 30 years.We still owe about $75,000 of the original $91,500 BOA mortgage which is at 5.875%.I talked to my Allstate agent and she said we'd have to switch from homeowners to a Landlord policy.First question, does this sound like a fair deal for both parties?