Probably $0 down payment.He'll offer you below market rent so that he can then rent it to someone else and profit off of the difference.

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In addition to the excellent feedback you received already, I'll outline below some of the benefits of using a Solo 401k instead of a self-directed IRA in case you are eligible.

Looks like a below average deal.

House value: 100k Case 1: Mortgage = 80k HELOC LTV=  75% ( if your mortgage was less than 75%*100k = 75k you would get the difference between 75k and your current loan as equity- see examples below)HELOC = 0Case 2: Mortgage = 70kHELOC LTV = 75%  =100k*75% = 75kHELOC = 75k-70k = 5k Case 3Mortgage = 50kHELOC LTV = 75%HELOC =75k -50k = 25kCase 4: Mortgage = 0HELOC = 75% LTVHELOC = 75k-0= 75k Does that make sense? 

Chapter 4, we reviewed the sections below.

I believe both the families are paying below market rent.

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Not maintaining a property or charging below market rents will reduce the value of a income property.The reality is that all property income is only a guestimate.

Call at least 3 Title Companies and ask them the following questions below.