She has since reached out to him and he hasn't returned her calls either.

and given that returns on these are right at 15 to 20% kind of best case for any volume ( granted I know we all hit our homeruns sometimes) but how can you pay that rate and make any money on the delta.. you would need to be buying pretty big tapes and then you would owe them money while your not making any money stabilizing the collateral.. unless their interest payments are on accrual.. ????? 

I feel tenants would be less likely to take great care of the property if they realize they've already lost out on 1/2 their security being returned.

@John Wallace This is in relation to the deductibility of interest on the borrower's individual income tax return as an itemized deduction (Schedule A).If the proceeds from an equity loan are used to purchase another investment property, the interest will be deductible against rental income.We have to apply the tracing rules when determining the deductibility of interest payments.

(I get it - I've done this multiple times myself, but you need a friend in the business to write up the bid because they are doing you a favor with no return)If you're able to keep these things in mind when talking to one, you might be able to mitigate some of these obstacles and actually get one out there.

You'd see better returns via refrigerated ac and clean units.

I think he would need to charge me for 2 returns?

Brandon mentioned lowering the offer and something else I can't remember to arrive at a purchase price that'll give closer to a 12% cash on cash return.

On the upside, 3.5% down means you don't have much cash in the deal, so even minimal cash flow might be an okay return if you can keep expenses low enough.For a duplex in the midwest, I'd personally want $200/door net cash flow.

Either return the full last month's rent to old T or delay turning over occupancy to new T until old lease is up.