Your ability to avoid sinking too much of your capital into Dead Equity by obtaining mortgage loans...without a job, will be key.Now, if you're one of those who are listening to 1994 Carlton Sheets cassettes, with no money in the bank, bad credit, living with mom and dad, but just a desire to purchase, then stop wasting your time and concentrate on finding a job.

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.