Why would someone privately loan a stranger they do not know a loan at below what a bank would loan that same stranger.

I'm also hitting the 2% rule with $800 rent and feel I have room to raise it as I am on the lower end in the area.Since I bought my first condo with cash I was able to leverage that equity with a HELOC (5/3 Bank), they appraised my property at $58k and gave me $37,500 (65% LTV).

I'm also hitting the 2% rule with $800 rent and feel I have room to raise it as I am on the lower end in the area.Since I bought my first condo with cash I was able to leverage that equity with a HELOC (5/3 Bank), they appraised my property at $58k and gave me $37,500 (65% LTV).

Any advise on bank-owned properties below 10k.

One of the bank records had a different name.

Ask them to get a current payoff from the bank to see how much that would be.

@William Lewis you're correct that closing costs on HELOC is much lower, usually just an application fee along with an annual fee (some banks will make you pay for the appraisal as well). 

I got a little over $17,000 back.I inquired on getting a rental property next, only to find out that my debt to income ratio is slightly too much to get a loan through the bank.

If he fails to pay, apply his rent payment towards the unpaid repair and then he will be short on rent, which is cause for eviction. 

I made this mistake on one of the units of a property of mine, and the main thing is I failed to create that channel of communication from closing on new ownership/management.