This is not a Fix & Flip. 1) One way to look at the Equity Profit: $50,000 Amount she placed in Investment Fund $15,000 Given to Seller for moving $35,000 Remains in Investment Fund To be used for reserves, carrying costs, marketing, closing, etc Here is how I Bought Bought $180,000 Amount Bought for Paid Out $15,000 Gave to Seller for moving Still Owe 2nd $20,000 (Seller carries a Second mortgage to us) Still Owe 1st $145,000 Our amount owing on the property Taking it Subject To So, we still owe $145,000 on the original mortgage and $20,000 to the Seller on a carry back 2nd Owe Total $165,000 for a total of $165,000 still owing Here is how I Sold Sold $235,000 "Sold" (Lease Optioned) Amount to a Tenant Buyer Collected In $20,000 Option/Down payment from Tenant Buyer Owner Carry $215,000 Lease Option to Tenant Buyer So far on the Investment Fund Paid Out $15,000 So, we have paid out $15,000 Collected In $20,000 And Received in $20,000 $35,000 Remains in investment Fund The $20,000 goes into the Fund Fund $55,000 Makes $55,000 still in Fund Profit $5,000 Equity Profit, so far 10.0% Equity ROI , so far Remaining Equity We're Owed $215,000 Amount Tenant Buyer Still Owes Me We Owe $165,000 Our Total Payoff (1st $145K + 2nd $20k) Profit $50,000 Amount Gross Equity 100.0% Equity ROI , remaining In Addition - We make monthly Cash Flow Profit $1,650 Tenant Buyer Monthly Payment $995 Our Monthly Payment $655 Monthly Cash Flow $7,860 Yearly Cash Flow 15.7% Yearly Cash Flow ROI It's a reasonable deal.

It is in the rental agreement that they carry it, as it give me protections and recourse if their pet does extensive damage.

Hutchinson bundling your homes into one "blanket" loan carries some benefits (and draw backs) but the rate is not one of them. 

If they pay, they are in compliance and you carry on with your lease agreement.

The house will carry itself if not even cashflow a bit.

I carry as little CC debt as possible, I try to keep it at zero.

It was an 1800 SF colonial in much better condition, didn't need new HVAC, but did have a big $25,000 foundation hit.With that said, what are you carrying for your rehab costs? 

If you have a history of late payments, carrying a balance, or have just never held a credit card before and are unfamiliar with the temptations of having an easily accessible $5,000 sitting around can be, I would highly recommend you sit on the sidelines.

Because commercial loans are often shorter than residential real estate the equity you're generating with the monthly payments can be significant.Sorry, I got carried away.  

However, @Mike D'Arrigo makes a good point with needing 20 homes that will carry you well over the 10 mortgage conventional max.The net result is that if I were in your shoes I'd be evaluating what a good first investment is for the $100K.