@Jay LeeWhat you describe is a situation that could happen to any landlord, really in any assets class.

For a private lender, what you describe seems like the only way one would expect it to work to begin with. 

I don't know the specifics numbers, but based on what you're describing... your margins are razor thin on that SFR. 

have you described your business model to your state department of real estate.. someone there should let you know if your doing a transaction that requires a license or not.you can usually write out your business plan make a formal request in writing and they will let you know..

@David Park  I just wrote a report here that describes my journey into Commercial Real estate.I started with Residential as it is easier to understand.

I understand the basic normal process now and have a local mortgage broker, but don‘t know if there‘s a similar process to finding deals like described in the Bigger Pockets Rental Book on Rental Property Income.The U.S. market seems overwhelmingly large and it’s hard to narrow down where to look and where it’s the easiest to invest remotely.

The scenario as described by Brian is typical but say the Seller cannot afford to make the repairs............Then you decide whether to just do it yourself(if the deal is killer enough and you are making a huge profit) or you can back out if Seller does not make the repairs.

@Israel MarQuez i have a few properties in new britain and even one that is similar to the layout of the one you’re describing. i’d be happy to talk you through this deal. at first glance, not a smoking deal. i personally wouldn’t do it at that price because it wouldn’t be worth my time. however, i can show you how to increase those rents and if you can buy at a lower price, it could be worth it. also, the location is extremely important in new britain too. send me a message if you’d like. 

@Pete Schmidt what you are describing is extremely rare. 

With this list I sent out mailed letters describing that I would buy the piece of land and take care of the liens on the property.