That $20,000 was money invested into updates on the property. 

I would rather do this and retain my money then give it to the bank as interest. 

The seller pays you via seller concessions and you use that money to pay your agent  4.

Originally posted by @Jay Hinrichs:Although in the MFR realm this is not a Guru how to make money with no money..

In fact many homes with too high of an occupancy are leaving money on the table.  

So even if you had a buy out agreement negotiated up front and execute that buy out agreement, the bank would still require him to be guarantor unless something drastic changed on your side financially.The best scenario here would be to purchase and rehab the property using a hard money lender or bridge lender.  

Neither of those pencil out.I think you'd be wise to save the money and find your own leads.

B) I don't have to give the contractor any money upfront for anything.3.

All together around 80k worth of money invested.

It helps you understand the areas where you want to invest, your rehab cost and where you money is going.