Transfer their portion of title over to them so that they are not a lender, but a partner.

Portions for personal use, etc.I'd check with a lawyer and a CPA.

You can choose to withdraw a portion of the exchange proceeds and pay taxes on that portion.

(Example: in one area where I buy, trash is paid quarterly ahead of time, so when you buy in the middle of the quarter, you owe the trash fees that were paid ahed for your portion of the quarter.)And if it's REO, then you will pay for the U&O (Use and Occupancy inspection / Certiificate of Occupancy).And if it's REO, then closing might be a LOT longer than 5 minutes ...

I will say he owns the Dakota Holdings llc portion. yes I meant author.

I'm not sure about your numbers, I guess you are financing a good portion of this investment and the lower appraisal means more money up front to qualify for the loan.I would need to know more about the location of the investment and the return on investment after PITI maintenance and property management to tell you how i would handle this.

I would put a portion of it in flips to maximize a short term profits.I would use hard money loans to also maximize profits and to decrease some of the risk (assuming it's less risky).

If the seller owns the property free and clear AND is willing to finance all or a portion of the purchase, THAT makes the property more valuable.

I want to make sure that there income is sufficient to insure that the rent is not to large a portion of their income.The part that does concern me in your scenario is "rental history is ruined because of her roommate" I might take a chance if everything else is good, but personally I would want a bigger deposit and would make her well aware that rent must be paid timely each month with no exceptions.

Wesley, If you are intrested in a property that only qualifies for the "mortgage" portion of the homepath program PNC Mortgage is a national lender that will work with investors.