The 2 mortgages are affecting his credit and he wants to unload the first house.In all my researching of wholesaling I've yet to find out how a tenant affects the transaction.

Example, home value is 100k with 50k on the mortgage.

I'm s successful investor and have several properties paid off and a few mortgages.

To determine the cap rate 1) Calculate the yearly gross income which in your case is $68,520.00 check the books make sure rent roll shows the rents are as stated.2) Subtract the operating Expenses not to include mortgage and interest =$28,936.803) Net Income = $68,520-28,936.80 = $39,583.204) Cap rate = Net Income divided by purchase price $39,583.20/400,000= 9.8958%Investors usually will use cap rates to compare properties in a neighborhood.

The 2 mortgages are affecting his credit and he wants to unload the first house.In all my researching of wholesaling I've yet to find out how a tenant affects the transaction.

If you're going to buy out here you have to play the long game, you don't lose until you sell, that's why real estate is so great, even if the market tanks you still have a hard asset to collect money from (because rents do not go down) and you have tenants to pay your mortgage while building equity and historically San Diego has been a great appreciation market, so of course one shouldn't speculate, but let's be honest, Real Estate is inherently an appreciating asset by it's very nature. 

I am not really sure who holds the note but homeowner mortgage is with a mortgage company and yes I know what you are saying.

Even then rare...Having 100% extremely late sounds fishy.Bad news: you may have to serve some notices and carry the mortgage (all or part) in the transition.... and you may need new or more effective management.....Good news: you can refresh these tenants (i.e., not renew as lease ends or evict for non-payment); screen the new ones and emphasize timely payment; also you get a good lesson: give one tenant an inch and they'll all take a mile!

Can anyone recommend lenders who will allow for getting a mortgage in the name of an LLC for purchasing a mixed use building in Philadelphia.

I'm sure they are using that mortgage as tax incentives.