He doesn't have very good credit and doesn't have a lot to put down on the deal.

Numerically speaking, the numbers sound great, but being that's so cheap and in a rougher area so the numbers can be over inflated when you don't take into account tenant issues, maitenance, and possible turn over.

That means a lot to me.Chris - You're a relative newcomer here, but I really appreciate your enthusiasm and participation.

Okay this is very simple.Buyers want to take over a property with no money down.A seller might look at a WRAP but wants to know that they buyer will stand a lot to loose and will fight hard to keep the property performing which is why they want money down.If the buyer puts nothing down then the seller could incur massive costs trying to foreclose depending on the state the property is located.Also remember no money down does not mean you will be without costs.I did a no money down deal on a 20 unit but I am having to spend some of the cash flow on deferred maintenance on the property.So you will have the initial closing on the purchase and then ongoing costs between now and in the future at risk IF a bank calls the underlying note due.Having said that banks are drowning with non-performing assets.They have zero motivation to create more loan problems on the books then they already have.Now in a few years when interest rates start to rise and banks have healthier books they might start really looking at calling loans due to re-lend at higher rates.So the key with a WRAP is the exit is just as important or more so than the purchase.Your possible exits might change over time so I am looking at how my purchases progress and are performing and then think each month about what the exit might be and do I need to change course.

There is a lot to say about this, but a quick piece of advice, you are getting a manager that will guarantee your set income regardless if the building makes money or not.

It will cost a lot to upgrade everything.

Thanks for the help guys, I'm new and have a lot to learn!

The property has been listed for over 720 days with numerous price drops, but I would still like to drop the price even further.

It prevents having the fees of numerous LLC's

He gave her numerous chances to make up the rent, do odd jobs for a rent credit, etc., but she didn't pay.