My note investing goals;Buy lowNon-performingHold and collect mortgage payments Resale to an investor looking for performing note Address: 2124 Tullis Dr Montgomery, AL 36111Asking: $42kLayout: 3/1, single family homeArea: CLien position: 1st UPB: $80,968.80Monthly mortgage payments: $719.78Sale comps: $62k Rental comps: $600 per month4 months behind on mortgage paymentsTaxes: $218/year (actual, from county website)Insurance: $217/yr (based on a formula for a home in the 50k-60k range)Here are my thoughts on how to underwrite it: Offer: $28k Fair Market Value: $62k Modified mortgage payments: $650 monthlyPayment upfront: $5kI came up with the 5k based on lawyer fees, BPO, tax for the yr, insurance for the year and servicer fees.

Additionally, they owe you for any damages, cleaning fees, etc for move out. 

The monthly numbers:Gross Rent = $1100Taxes & Insurance = ($156)Vacancy = ($92)Repairs = ($77)Trash, Lawn/Snow, Inspection Fees = ($103)PM Fees = ($161) based on 80% first month, 8% monthlyWater = ($46)Capex = ($110)Total Cashflow = $355/mo, $177/doorROI = 9.5%.  

The other contracts require deposits, pet deposits, and additional pet fees for each month in addition to rent. 

-Many brokerages will not charge desk fees.

I have a tankless water heater installed in front of my house (rancho cordova).

A prior tenant moved out quite abruptly in the middle of a lease period owing about $2K in back rent and lease break fees (specifically outlined in the lease).  

A new walk in shower needs to be installed for my dad.

I then told her to give me the quotes of different carpet installers and we will speak about the best solution.

Pre-Payment Penalty: If they have one, is it a flat penalty or does it have step down component like 6% of loan amount if paid off in year 1 / 5% if paid of in year 2 / 4% if paid off in year 3 / 3% if paid off in year 4 or is there a loan yield maintenance fee if paid off earlyUse of Funds: What are the funds being used for?