My intentions are to perform a cash out refinance and within a few months, I would like purchase a new home and lease my existing property.Many lenders I am dealing with claim to have programs that can perform to my intentions.

Perhaps it's because I don't have tons of cash standing around, I don't want partners, and I don't completely trust the risk equation of larger more expensive Class A projects - these are the only kind of rentals I buy.Assuming you want a project and you can and will put in the elbow grease - If they are performing and in an okay location and in rentable shape with good bones, $6k - $7k income with value-add potential for $100k is a great deal.They should cash flow enough to pay for almost all repairs except for large capital, but then again you should be able to save for those out of cash flow, or refinance in a few years.If they are willing to hold the note for a couple of years, you could offer them a high interest rate if they finance the entire thing for two years, or maybe they can take %10 down.

OK lay it on me everyone.I'm looking at purchasing a few baby notes in Florida - non-performing firsts.I've purchased many in the Nashville area and all over the state of Tennessee.

Getting a lease gives you possession under a leasehold interest.Work with motivated and agreeable owners, you won't have issues with them performing. :)

Most people casually say "talk to or interview brokerages and see what they offer" assuming that others know what's good or what to ask or look for.

I'm walking through a for sale by owner income property in the near future - is it appropriate to have a casual conversation with the owner about if they are firm on price or does it really need to be done with a written offer?

The simple example would be working with a performing loan and working with a non-performing loan.

For me, I do very large and complex renovations on high end homes and I do multiple projects at once so it is necessary for me to have a project manager while also performing the GC duties.There are many factors that go into each process and each individual situation will determine which you choose.

Depending on the yield you are looking for you might be able to buy performing notes that meet your need.Bob

"Excellence/performance is not a destination; it is a journey that never ends