Here is how I would view this deal from a numbers point of view:Mortgage Rate 4.50%Length of Mortgage in years 30Monthly Mortgage payment $491.89 Taxes $272.67 Sewer and Water $- Trash $- Heat/Utilities $- HOA $- Cap Ex and Ops $150.00 Insurance $83.33 Mgmt Fee $180.00 Vacancy $144.00 Total Expenses$1,321.89 Unit 1 $1,200.00 Unit 2 $600.00 Total Revenue $1,800.00Cashflow/month $478.11 Cash on Cash Return 19.27%

In states where specific installment purchase laws have not been adopted, the placing of a deed in escrow as a deed-in-lieu-of-foreclosure is seen as circumventing foreclosure laws, the IRS sets rules as to installment sales at 10%, equitable interests can always be claimed regardless of length of ownership in a contract or the amount paid, other matters may effect current market value that can be credited to a buyer to determine equity as well.

I apologize in advance for the length of this.  

The term length, interest rate, etc are not set either until they speak with him (I was surprised they even discussed what they did with me.)

Or rather the length of time it took for wedding vows to seal the deal.  :-)  I married into the business, but I was already primed for real estate investing from earlier endeavors.2.

Term Length? 

Is it usually a matter of your overall debt to income ratio and it's length of history?

You also will know the interest rates and term length for your Cash Flow analysis.  

They said the Supreme Court has determined that an arms length transaction is the ultimate decider of home value and reduced my taxes from $190k to my purchase price of $110k.

For every tenant you like, indicate you're going to fix up the house and move everyone to a longer term lease that's priced by length of stay.