He also stated that the charge to handle the exchange is a flat fee of $850, which I didn't think was too bad.

@Alexis Miller usually banks require you to sign a mold disclosure before entering if it is that bad.

My offer to the seller (please analyze and offer feedback, offering soon)-$230,000 for the house-$60,000 down (paying off lien, avoiding foreclosure, I'll cover closing costs)-Seller financing for the $170,000 balance at 3.5% ($495.83 payment to him monthly) interest only for 5-7 years (seller's choice)-If he takes the offer for 5 years, he'll net $259,749 for the house-If he takes the offer for 7 years, he'll net $271,650 for the houseOverall I think this is a very fair offer and not a bad way for him to get out of this situation considering the alternative.Property and Cash Flow Analysis based on Current RentsOffering Price: $230,000Closing Costs: ~$2,500Rehab: ~1,000 for some exterior paintingDown Payment: $60,000 to payoff lien, closing costs.

Turned out to be a bad investment and did not go through with it.

And you'll also have to recapture depreciation for the time you used it as a rental.So it's not as sweet but still not a bad deal. 

Future considerations are, in the event the meters should go bad and get changed out, the repairs are held to 1 location on the property.

Once I hear tenants or even potential tenants asking for upgrades, it's a bad sign...in my experience.

The biggest mistake they make is buying in bad neighborhoods thinking they are getting a deal.

Your 3rd loan can be an FHA 3.5% down loan and now you can own three duplexes with 8.5% down.Alternatively, if you start with your VA loan first your 2nd purchase would be the FHA 3.5% down, which is not bad, but the problem is that for your 3rd purchase you would have a minimum of a 15% down payment if you purchase a duplex and 25% if It's a 3-4plex.

NY is bad on that end .So I bet the pro note buyers could price that better.. than someone like me.