don't forget, you can have negative returns in real estate.Keep an eye on u.s. treasuries, as the benchmark 10 year is expected to continue to go up,and if the market is still intact after 4%, then you can feel pretty confident that this is sustainable. 

Here are some basics on the property.SFR RentalLong term (3yr) tenant pays $1350/mo + all utilities (tenant is local school superintendent)Owner possibly refinanced at $100k in 2003.26 acres2 /11 1/4 story capeWaterfrontDetached 1 1/2 story garageTown Assessed Value: $122,300Actual resale value: potentially around $150k Deeded access I have put in 10% management, 8% vacancy, and about 6% others (capex, maint, etc.)So here is what I would like to send his way for a seller financed offer with no money down: Seller financed at 5% (30 yr amortization) with a 5 year balloon payoff payment Balance payoff payment at 5 years (~$91,829) Early payoff <24 mos = 10 points ($10000)Early payoff >=24 mos <36 mos = 8 points ($8000)Early payoff >=36 mos <48 mos = 4 points ($4000)Early payoff >=48 mos <60 mos = 2 points ($2000)Option for buyer to extend payoff date up to 15 years (within 6 months of payoff date, at a cost of 2 points.)Buyer to pay all title, recording, transfer fees etc.Total Interest Paid (If paid in full at five year mark):$24,038Total Sales Price with interest (If paid in full at five year mark) : $124,038Keeping in mind that we make money on the purchase, I would like to offer a fairly low purchase price that would help me get my foot in the door, and continue to give him monthly cashflow and delayed capital gains.  

Go with what you feel is comfortable for YOU and always continue to learn and grow from places like BiggerPockets.   

I think many owners are looking to start selling their properties since interest rates are continuing to rise so it might not be a bad time to start looking.

@Allan Anderton You would refi so you can pull your cash back out to reinvest into the next deal and continue to recycle your capital over and over again to ultimately grow your portfolio.

Thanks Chris - I continued my detective work on this property and found out that the apartments above are a revolving door for this exact reason.

I spent last weekend tiling the porch of one of my properties in the diagonal/tile style as a challenge and that's something, to me, that is fun and rewarding.The reason I posted this in "Off Topic" is because this is a bit tongue-in-cheek and a bit serious too!

I was debating on what to do--whether to continue or not.

We'll say for roughly 100k. once i have a loan theough a private money lender, can i refinance using a more tradition style loan and lender such as a bank?

My question is the following, if I buy an investment property (while continuing to rent where I live), does that prevent me from qualifying for an FHA loan later on when looking to own my primary residence?