Hi Christine, I'm assuming they're behind on payments and that's why the owner is calling in the note?

By obtaining a lower interest rate, your monthly mortgage payment should decrease.

Both scenarios for comparison sake, would be about 100k out of pocket, for either the 4 down payments or the 1 down payment on the house.

It does not require lawyers and is a common remedy for chasing tenant debt.If they are responsible individuals a small claims charge on there records will prevent them from getting loans, buying anything on credit or time payments etc.

My only "plan" was to continue to buy homes once I could save enough for down payment/closing costs and lease them out hoping to cover the mortgage and still make a little monthly income ($150 - $250 minimum). 

That's ~50K a year.Now if i get a loan on 750K @ 4% - thats just the payment of $3521*12 = 42K a year.Add 15K of taxes - 57K.In fact - there's no return at all in this example.Am I doing this about right? 

An owner called me who is 6 months behind on payments and looking at foreclosure.The home would be worth about $130,000 after about $20-25k in fix up.  

I believe if you purchase your house as if it's an investment property (purchase it according to market rent) It doesn't really matter if the price drops, you could be under water if the market crashes but your payments will be the same if the loan term is fixed.

I'm going to give my LO some time, but if they don't produce it, I'm going to talk with my attorney.Thankfully I'm using equity from another property that I own F&C to satisfy the 25% down payment requirement.

All have tenants with a total of $2635 per month income, this will go down with resumed tax and insurance payments.