We are charging $1700/month but the property performs within -$100-200 with all the expenses depending on the month.

They had issues performing because they didn't underwrite expenses correctly and as a result they ended up carrying alot of debt and losses.

House hacking may not be for you, but every method involves risk, expense and discomfort.

It's a -14% return if that $800 is before interest ($375k debt * 3% = $13,125 in interest expenses).

Yet, weigh this against potential stress and expenses.

At a very high level a property has a “tax basis”, once you exceed that basis you are subject to taxes, whether that happens when sold and paid in full or paid over timeThe loan provided by seller financing is like any type of loan where the interest is taxed at ordinary income rates.

By then insurance will have been renewed and the new property tax assessments will start to be paid, versus just on paper.4. 

PLUS you’ve paid an additional $xx in pet fees because of the additional wear and tear pets cause on the apartment. 

You could start saving and cutting your expenses aiming at arriving at that specific amount for a down payment on the day of purchase.

Tax Returns: Request copies of the individual's previous years tax returns will confirm there yearly income and account for expenses and liabilities.4.