too skinny..  

I hit skinny FI long ago, but then came freedom to. 

Notes are like play doh ma boi you can make it long and skinny or short and fat. 30k down is more realistic (10% down), but 10k down is not impossible.

Keep reserves for yourself and your properties and don't do skinny deals. 

Full time investors with scale and trusted vendors can make money on skinny deals. 

While the responses are good, may I recommend you speak with a bonafide lender to get the real "skinny" about interest rates etc. 

I guess my general question to the Worcester investors out there is that I run the numbers and its still pretty skinny. 

Just don't be "skinny" on your proforma as it relates to expenses to make the deal work on paper.

way to skinny to make any money at this given the risk..

Verbal offers don't mean much - if you are a serious buyer/negotiator -PUT IT IN WRITING along with a copy of a check (I always use what we call a "Skinny Contract", this is a one page document.)Show the seller what he will receive over the period of owner financing --if seller took back $100,000 @ 8% interest, interest only payments, paid monthly with a balloon at the end of 60 months - would look like this 8% x $100,000 = $8,000 a year ($666.66 a month for 60 months = $40,000 plus the principal balance in a balloon payment of $100,000 - so the seller get his equity of $100,000 plus $40,000 in interest) these facts can be very motivating.Seller needs to know about capital gains and the benefits of seller financing and installment reporting.Seller can use the financing note as a down payment or other real estate or sell the note at a discount.Seller can split the note - 4 $25,000 notes or 2 $50,000 notes - again these notes can act as down payments deposits on other real estate, sold or retained as monthly income or given to relatives as gifts.When seller financing is accepted - you may want to consider the following agreements or clauses: Always build in a discount in the event you pay the note off early (big savings here).Always make the mortgage a First Subordinated mortgage - this means that if you refi - you can place the seller's mortgage in 2nd position - since a lenders usually wants to be in first position.Make that mortgage fully assumable with release of liability - that means when you sell the property, your buyer can assume it, and you are released from the obligation (this is good)When selling the property - you can do a wrap-around - meaning if your interest to the seller is 5%, you can wrap the mortgage at a higher rate - like 10% - that means you are making 5% on money you owe - this is sandwiching the mortgage (this is good - never stop negotiating)Build in a clause that allows you to walk the mortgage to another property with equal or greater equity - this is called substitution of collateral.