Some precautions to consider:- Make sure the person who is the borrower of the underlying bank mortgage fully understands the implications  of a wrap, as well as the buyer- Consider a 5 or 10yr balloon note (vs. 30yr fixed) if you are worried that the seller may have 2nd thoughts down the road- Buyers should need to bring a significant down payment to the deal so that they have skin in the game- If your state allows a Deed of Trust for the wrap note, I suggest using that document (vs. a Mortgage) as it will put a lien on the house allow the Seller to pursue a non-judicial foreclosure if the buyer does not perform.- The home insurance after the sale (the new owner is the "insured") should retain the name of the previous owner(payor of the bank note) on the insurance as "additional insured" so as to not set off any alarms with the bank.- Use a 3rd party loan servicing company to collect all mortgage and escrow payments and make all appropriate payments to the bank lender as well as seller finance lender.   

@Rich Senyszyn that's Incredible... sounds like he was learning more about the guitar and less about fixing your place.

Then find a SFH or MFH to purchase with a 203k loan and rent our current home to pay off HELOC and part of the 203k.Then refinance new home after a year to transition 203k loan into 30 yr. fixed.

Just for reference, I'm buying the house for $140k, it's probably worth 180 as it sits and 250 fixed up. 

Dear,I live in Louisville, KY. I am working on my first project. However, I have made two contractors change. And that is sinking me more and more in the negative. I believe one of the reasons is that most of the agre...

Now the increase in fixing cost, re-appraisal, the offer (VA loan), and the supply and demand of market suddenly change.

Assuming a 30 year fixed at 5%, in order to achieve a $500 monthly payment, you would have to put down $141,860 (or 60% down). 

I still however have questions on insuring my property while I get it fixed up before I can move a tenant in.

Is this a fix and flip? 

Dear,I live in Louisville, KY. I am working on my first project. However, I have made two contractors change. And that is sinking me more and more in the negative. I believe one of the reasons is that most of the agre...