If using a lender this is a non issue.

Which means the bank could call the loan due immediately, without all the lengthy non-sense required to foreclose, if the property is transferred to you.Second, you need to know, directly from the bank how much it would take to bring the loan current and avoid the short sell.  

If the $9k is your actual free cash, that's still not a lot, particularly for any future issues.

His niche is very different from what I am familiar with, so I'm having some trouble running the numbers and I thought I'd turn to you guys.So he(my relative) has been doing this exact strategy for a few years and has done a good number of deals(~40) so I'm confident he knows what he's doing, but his strategy is as follows:Buys a distressed trailer(mobile/manufactured home) repairs it, and then sells it to a tenant that either can't qualify for a normal  loan, or doesn't have the money to purchase a normal home.So for this particular deal, the numbers are as follows.Purchase price of $5750.Rehab of $8000.Rehab should take roughly 3-5 days.Selling we are assuming a month, but he says typically less.Taxes are around 600/yr(which the new owner will pay) but accounting for the month we have it, $50.The lot rent for the trailer is $350.Closing costs would be maybe ~$100.We'd sell it for ~22k, with a down payment of 2k at 14% interest for 75 months.So our purchase and rehab would be ~$13850, plus a month of holding for $14250.We'd get 2k back bringing our investment back down to $12250.We'd bring in 400/mo from the mortgage payment.As far as I can tell, this would be about 35-40% cash on cash return.Please go over these numbers and tell me if I'm missing anything.

His niche is very different from what I am familiar with, so I'm having some trouble running the numbers and I thought I'd turn to you guys.So he(my relative) has been doing this exact strategy for a few years and has done a good number of deals(~40) so I'm confident he knows what he's doing, but his strategy is as follows:Buys a distressed trailer(mobile/manufactured home) repairs it, and then sells it to a tenant that either can't qualify for a normal loan, or doesn't have the money to purchase a normal home.So for this particular deal, the numbers are as follows.Purchase price of $5750.Rehab of $8000.Rehab should take roughly 3-5 days.Selling we are assuming a month, but he says typically less.Taxes are around 600/yr(which the new owner will pay) but accounting for the month we have it, $50.The lot rent for the trailer is $350.Closing costs would be maybe ~$100.We'd sell it for ~22k, with a down payment of 2k at 14% interest for 75 months.So our purchase and rehab would be ~$13850, plus a month of holding for $14250.We'd get 2k back bringing our investment back down to $12250.We'd bring in 400/mo from the mortgage payment.As far as I can tell, this would be about 35-40% cash on cash return.Please go over these numbers and tell me if I'm missing anything.

Your Cash on Cash Return is non existent.  

Then ask them if there is a particular day or time that absolutely does not work for showings, and by showing that you are willing to work with them, most tenants will be compliant for showings on the other days/times.This is definitely a case for open communication, you are both on the same side and want the showings to end, but what you want to make clear is that they can have a hand in that by making their home as attractive as possible, and opening up showing times so that people will want to see it and sign a lease.Good luck! 

I am new to the loan process.I am looking at this scenario:$1.75 MM building$475K Cash Downfinance $1,225,000I have loan options.  Building yielding $116K per year prior to PITI.NIO about $65K currently.Regular mortga...

If only one qualifies, you'll have to convince the non-qualifier to walk away, with no financial repercussions. 

@Quinn Jackson As a lender (purchaser of non-performing loans), I would pretty much never allow a borrower to do a wrap on one of my loans, assuming that there was the proper verbiage in the note itself.