Trusts do have benefits, but the costs for you at this juncture may outweigh those benefits.Often times, what people truly want is to just be protected in the event the unforseen happens with the property, and thus, a solid, robust insurance policy is often the most cost effective route at this point.

. $16k entry cost plus closing costs.I have 20k saved in cash$83,000 pp 2bed 1bath 950sqft.

Are you financially in a position to handle the cost to see this project through?

Hey Anne, I'd suggest you do some research on the MTR rental rates and vacancy rates in your target area and understand the costs involved in renovations, financing and property management.

I live in NJ, and it has a very high cost of living and with the current rate of interest, makes it a very pricey market so to say, and not that investment real estate friendly.

You don't have a lot of equity in it after you factor in closing costs and realtor's fees. 

We can cover that monthly but would be happy with a 50% occupancy to help offset those costs.

consider the opportunity cost of doing this#1) sell house for cash or to a buyer with their own financing from a bank, etc and you get 315K at time zero, you invest that at historic SP500 8.4% return over last 220 yrs and it grows to $3,541,514.46#2) do owner financing and you get 100k up front that invested at 8.4% grows to $1,250,000, plus you get your payments at $1400 x 360 months or $502k, invested grows to $3,265,000 total including the 1.25 mil aboveso you come out 300k better not doing it and you don't have to service the loan and all the other risksremember banks don't even carry mortgage notes after origination, they dump them onto the US taxpayer via illegal-unconstitutional havens like Fannie/Freddie/HUD, and for last 15 yrs the FED has bought every MBS in the country, which frees up the Banks capital to do it again and make the real money on churning the points and feesplus will next 30 yrs have higher inflation than last 30 yrs?

That being said, they are extremely costly and expensive and generally do not make sense for smaller transactions. 

Only thing I will add is if you rent by the room, you also have to factor in landscaping costs (mowing the grass) and ideally cleaning of common areas (eg weekly cleaning service).