After that year, I would exercise my option to buy and purchase the home for the remaining balance.I understand this is all subject to the terms I can negotiate with the seller.I'm looking for any feedback.

Many so-called gurus out there may have done well during the boom...much like hitting the side of a barn; you couldn't miss back then.Now, even though certain principles remain the same, market conditions are much different.

Sounds like you paid interim draws even though you were not satisfied with what you saw.

For example, they have the 1% or 2% rule of thumb - that a place that you can rent (monthly rent) for 1% of purchase price (e.g. buy for 100,000 and rent for 1000) will cash flow well.On the other hand in Brampton I talked to a man who learned from a guru to buy a 500,000 property and be satisfied with $150 cash flow from that.

The beauty is, you don't qualify, the initial borrower remains responsible as the loans are non-qualifying assumeable.

The remaining 10k would be depreciated over 5 years.It will qualify; however, you may want to straight line depreciate it or just take bonus depreciation to push some expenses to next year.

My actual costs would be whatever I purchased the note for, and any legal fees involved in the foreclosure, but I would not be obligated to buy or satisfy the 1st mortgage from anything other than the sale of the property correct?

See an attorney.These` are "pass through" sales/installment contracts, you're a party to the deal as you remain liable as a guarantor.

Because if you're using your VA loan to purchase this property you have to occupy it with 60 days of closing and remain in occupation for at least 365 days.

Like you comments above as when using leverage, one needs to make sure to satisfy lender requirements.