If you buy the property for $100K, the $80K  mortgage gets paid off and the owner get the remaining $20K. 

@Mohabub MiahIf you are asking about owner financed purchases, I know nothing.To borrow the remaining 80%, banks are an option.

@Michelle FourcandMichael S.I just wanted to say thank you all for you advice on the seller who wanted to remain in the home 5 days after closing.

The remaining part of your bid that you don't pay the day of the sale, is not due until you record your deed.

The remaining 2/3 of each expense is taken and 2/3 of the total cost is depreciated.I'm not fond of the by number of rooms method as it does not always give an accurate depicture.

As to the debt to income ratios, yes, payments on any installment loan having 6 months or more remaining any real estate loan with a balloon will be considered.

My first insurance carrier (USAA) limited my standard fire/liability policy to only 4 properties so I just went out and picked up a Liberty Mutual policy for the remaining 4, but now I'm in the same problem since LM won't insure more than 4 either.

Download the guide at http://www.dre.ca.gov/files/pdf/re25.pdf This walks you through a detailed answer to your great question.Pg 13 - Steps in Conducting a Physical AnalysisPg 16 - Determine Useful Remaining Life for Each ComponentPg 18 Determine Cost of ReplacementPg 23 Funding AnalysisPg 28 Pulls it all together in a spreadsheet

Tenant will be responsible for the remaining unexpired term of the lease until property is rented to a new tenant8.

If he profits $100,000 from flips, he pays out $15,000 and has $85,000 remaining in addition to the original $100,000 from investors.