Given the 50% expenses and a mortgage of $300 a month or so, I'll have nice positive cash flow ($350 a month total on 2 doors).Now granted, I'm not sure I would want to live in a duplex.

I will offer 97k max, I have 30% cash downpayment and have secured financing for remainder.

Also make sure you can secure the property at the end of the day, i.e., verify all door and window locks are serviceable lest the squatters move into your job site without so much as offering to pick up a paint roller.Then grab your sledgehammers and go to town.

I have the seller sign a Letter of intent to Lease and To OptionThe letter of Intent covers...Address, Rental Term, Renal Payment per month, Security Deposit, Possession Date, Option Sales Price (could new appraisal), Option Money (usually 3% or $5K min), Representations, Warranties, Covenants, and Indemnification, Legal Effect, Notice of Intent to Assign, Option Period (45 - 60 days)I have them sign the letter of intent (LOI), it goes to my attorney, and the attorney prepares the paperwork.There is an option release disclosure document that discusses that the buyer will be responsible for the following fee’s to be paid out of escrow at closing, which are for the release of the recorded notice of option, the assignment of negotiated purchase price, and the negotiated rent.2.

I've had some tenants that were borderline and they agreed to give me first month, last month and security deposit since they really didn't qualify and sometimes these are my best tenants.

When they sign their name they grant you legal ownership and possession of the property.

Are you giving the family mamber a mortgage on the property as security for the loan you are receiving?

The house looks great.I would recommend you change the ad though:"$800/Month, (first & last month to move in)"When they give you notice they won't pay the last month and you have no security deposit.

He also receives higher than average market rents by NOT taking a security deposit, thereby opening up his market to several renters who have the income, but not the savings.Will his methods work in other areas?

I've begun researching companies that handle checkbook LLC IRAs and I received some info from the Security Trust Company stating they will charge a 2k set up fee which includes setting up the LLC and handle all other costs for an annual fee of .98.