@Jaden Adams This is an outstanding option!

I do not have specific numbers but expect that Vegas has a higher percentage of them outstanding versus other areas.

As much as I'd love to see this area thrive, there are many factors that are preventing me from from investing here: Electric (BPU) company holds landlords liable for tenants' outstanding bills (liens).

@James Wise, outstanding sir!

GO 100% self-employedFebruary- Outstanding 401K loan due within 30 days of leaving W2.

Please help me to understand my calculations.This is an example:Comps on a property = $250,000 (ARV)Owner originally got a loan for $200,000Owner has paid $80,000 on loan so far ($80,000 equity)Owner has an outstanding loan balance (or mortgage) of $120,000 ($200,000-$80,000)Owner is asking for the loan balance of $120,000 + $15,000, for a total of $135,000 (asking price)So, if I have an ARV of $250,000, and I subtract the following (to get MAO):$3,750   >   Acquisition costs (1.5% of ARV)$17,500  >   Sales costs (7% of ARV)$10,000   >   Holding costs (4% of ARV)$20,000   >   Profit (I want to make on flip)$33,000   >   Repairs (based on $15 per sq ft on a 2,200 sq ft property)$3,300   >   Hedge (10% of Repairs)= $162,450 MAO (Maximum Allowable Offer)Then, do I take this amount and subtract the $120,000 mortgage (loan) = $42,450, and then subtract out the $15,000 that the owner would like to have, leaving an additional $27,450 for profit?

So how do i know what is the outstanding balance on the mortgage?

TOO LATE, the wire for the full outstanding balance has already been sent."

However, since the notes are likely to be outstanding for a very short time I would prefer not to discount the balloon payment much. 

When you repay a loan, a portion of your monthly payment is interest on the loan, and a portion of your monthly payment reduces the outstanding balance on the loan.