A family member agreed to finance the down payment, but I ran into a snag obtaining conventional financing so I ended up borrowing the entire purchase price from the private lender.

If you're looking to offset income this is a great method. 

@Tyler Kowalczik- thanks for the post ....1) get pre approved for a nypotehtical  scenario  so that  you  can make sure you can get  financing and also  so you  can  become familar with the process  2)  you will need a  down payment of  15% or more   3) once you know what a  possible  realistic  loan payment  looks like - do your  reserach on  what  rental incomes  are  realistic  and  this should help with your  decsion making .....the prices are  high in LV ...Port angeles  or  P townsend  might be  better ......consider  Kitsap county  ( although its  been  increasing in value )

Ask for one year history of the rent payments from her family's rental property.

Was the house paid off or did you take over payments? 

So I decided to make my own spin on Brandon Turner's Four Square Method of Analyzing Rental Properties by incorporating it into a "FILL IN THE BLANK" template.   

Quote from @Ethen Royal: Different methods, but my policy is to get a monetary judgment.

.- Current owner continues making monthly payments, we pay him after he shows he paid the mortgage on time.

Downpayment, closing costs, holding costs (loan payment, utilities, insurance), money to front the contractor to get started (you get back after the rehab is done). 

I released the co-signer after first year of timely payments.