I was thinking perhaps giving him free rent, but to cover his expenses AND get him to take $100k of the price.There's probably an equation that will tell us how much to take off the asking price for every dollar in rent he pays until his space is filled for going rates.Any other leveraging ideas?

Don't over pay for a piece of property3.  50k loan would equate for roughtly a 400 to 500 dollar monthly payment (Depending on credit and down payment).at $850 per mo you are good.   

Run those equations, figure out how much he wants to put down and make a choice from there.And make sure he runs the numbers as if he no longer lives there.  

When I add vacancy and a maintenance budget in, the NOI drops to about half of the pro forma NOI...which equates to an ARV of about $165k less than what it's listed for based on the stated cap rate.Any way I look at it, this "deal" loses money. 

We are negotiating seller financing deals, masker lease options etc... and everyone wants either a down payment, option money or hard earnest money--- all these equate to SKIN IN THE GAME. 

Rarely, does anyone pass the first time.On the other side of the equation, city landlords are weighing the often high cost of compliance every year (or two) added to property taxes (many of whom are on payment plans with the city) and lack of income that would otherwise help offset the costs.

No drama and constant calls asking what they should do to be successful only for them to say they can only do 2 out of the 5 steps etc. that I tell them.I am so content to keep closing my deals with my clients and do my own investments and it works out fantastic for me.I equate new agents to new investors trying to rehab a house.

Since this is a higher end home, that may equate to a small cash flow, but not much once you take into consideration all the costs.I would flip that deal and use the funds to find another flip and/or another buy and hold with better cash flow.

Originally posted by Curt Davis:This is very difficult to do, at least in the Memphis market.This is the exact point of the equation.

They keep bringing me deals that the bank won't accept any offer less than some amount that does not fit that equation.