You're getting just shy of 1%, but if you feel you're getting a big discount on the property, it may be a good investment.  

Thanks Hey thanks for the reply and congrats on finding bigger pocket. wholesaler buy property at a discount and sell it to you for profit.People refinance because they want to pull their money out to leverage into other investment. if you put nothing down and still have cashflow. that's infinite return. nothing can beat that.welcome to BP again

Long story short, he sold his Ferrari a year later for a huge discount.  

Ultimately we have to take the discount into consideration when selling and everything is based on the numbers.

Your yield will be very high.Make sure that the mortgage is fully subordinated - meaning that if you get a new first mortgage the interest free mortgage will be moved to second position.Also make sure you have "first right of first refusal" in the event the mortgagee decides to try to sell that mortgage, you have the right to buy it at the offered discount.  

You have to buy on fundamentals and not factor in much appreciation if any save for what might trend with inflation.The big question is if you buy something now and its on par with what you are paying in rent then thats a push and you have all the benefits of owning your own place, both psychologically and economically, if you are buying for speculation of it going up in value I would discount that.

Here is another one to add to Roshan's suggestion www.AgentPro247.com (use Partner ID: CFGRSH for a discount). 

In either case, you can save a TON of money by buying discounted HD or Lowe's (HD is easier to find) gift cards/store credit off Craigslist (I normally pay 70% of face).

You do realize that REO agents donet have much insides for pricing or any thing...Most oif them dont even double end any more as they are fearful from banks.Keep in mind Buying REOS, is dealing with a system that doesn't make sense, I have a few agents that bring me deals and they are big REO agents, they work off volume and not discounts, offer has to be sent to asset manager and that manager may or may not let go of that asset.

My concern is that because I got it at a discount and the financing used is listed as "conventional" (which typically denotes that a non-FHA mortgage was used to purchase.