I was just hired (though unwillingly) to purchase a note on behalf of a past client.

You with cash, the bank with a note?

Sounds like loan fraud to me.Takes a LOT of rent to be profitable on a $240K note

That includes any federal reserve notes in your wallet right now.

Mike So using this logic, a true 12 cap rate with a 1million dollar 10 year fully amortized note that has $10,000 cash flow a month is worse then a true 8 cap rate with 5 year interest only balloon payment loan with $11,000 cash flow a month?

"It is important to note that if people trespass into private property, it is up to the property owner to take action to remove those individuals."

Can Homecomings Financial sue me on the note for the deficiency?

I am not longer in the LLC.It seems that any other agreement I come up with, other than the note, would just be a private agreement between him and I.

So let’s say you buy this $70K home with Hard Money Financing and put down $10K and the lender puts a note on the property for $60K and then you rehabbed the property spending $30K.

As Mike noted when you set up a lease option you are going to require a down payment which then can be credited as teh 3% down payment down the road.