Unfortunately it's not that easy, IRR is discount rate that makes the net present value (NPV) of all cash flows from your deal equal to zero.I would only use it in a situation where you are looking at two deals and all other factors are the same (which is almost never the case).Or if you are looking at deals with a IRR of 15% to 20% and you run across a deal that says they are estimating a 10% IRR then that's not going to work and you can eliminate it.

I have used this strategy in various situations, but most of the time, if the seller is willing to do it, then I will set it up with owner financing because the terms of the loan and the deal are usually more favorable to me than if I were to get some other form of financing. 

I’m sure there is a ton of holes in my situation that you all will point out.

hey @Shaun Morgan , I don't have too much experience in this field so DEFINITELY take my opinion with a pound of salt, but from my education in entrepreneurship and from what research on the topic I have done, when it comes to private investors it is less about what info you bring to the table on the first visit and more so how you approach the situation.

I am not trying to sway your decision, only you know what's best for your situation, just that if you are driven to use all of the equity, that feeling may not go away once you move it.

I would be going into the situation hoping that it will not appraise because I already "know " or assume I over bid.My realtor claims that if it does appraises to the high offer price, at least I will be reassured that it is worth that price.I'm just not sure if this is a smart way to go about this, but with bidding wars and low inventory I need to figure out what to do gain a desirable home.

Thanks Derek for the advice that's really helpful, and yes as soon as she told me I shared my condolences and did ask a little bit about the situation but I didn't want to dig down too much to the point where it may be too personal for her to talk about to a stranger.I definitely like the part of continuously following up with her and building a relationship, that makes sense and once she is ready to sell then I think I will have a leg up on others.So my next step is to find out the ARV of the property through comps and like you said try to figure out how much repair cost it needs then make an offer.

 Mark, thank you for your offer, yes, I'm going to need your help, as soon as I can find professional advice in regards to the financing process; I think my situation is a little more complicated, I'm still evaluating the situation myself, since my visits to local banks were not helpful.

BTW, I am doing the listing and finding new tenant my self, what is the best site I post ad in my situation?

However, I would do some research on what type of notice the regulations require in that situation.