Buying a home first will allow you to get permanent owner occ financing at favorable rates.

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Understandably, the owner doesn't favor opening up finished sheetrock if its not necessary.

Get all the stats on the home make a tour and then examine all the sold homes within a mile of the home that compare favorably with this property and then take the average of the "sold prices" to set a preliminary "List Price".

Ok - so they wont be buying the property together.Comparable homes in the area have sold very recently for approx 200K but this owner would sell for $150 because of years of rent and improvements this person has put into it.These are not investors they are friends and are doing favors for one another.Now, my family member would like to buy the property outright, keep in his name, then perhaps re-sell, or put this renter on a lease-to-own.If they do buy the property for $150K, what would be some basic numbers on a lease-to-own agreement?

Having practiced law for thirty years I do favor LLC's in most cases.

I wouldn't ruin my credit for 250 bucks a month.I highly doubt it would take 10 years to reach a payoff you could handle.A residential recovery and workout of toxic loans is at max about 3 years away on a national level with some areas performing and recovering much faster.Why not go to the bank and say rents have gone down and I am struggling.Ask for them to renew the next time at 3 or 4% interest.That will make the gap smaller and go up in rent just a little but not much.Yes insolvency will wipe out any 1099 phantom gain as long as your liabilities exceed your assets.Most local banks all have you sign a personal guarantee.They consider it YOUR WORD as a vice president has told me that you will honor your contract (one of my clients short selling an apartment).The bank said at that time they DID NOT want to short sale and favored instead writing the interest rate down and extending the loan another year at a frozen rate and see what happens.Banks do not want to DUMP everything like people believe.They only cut out properties they see as having no chance of a recovery in the future or a liability if the took back (war zone,environmental issues).In that case they will usually sell the note if it has environmental issues or they don't want to foreclose.I would try the options I have above instead of ruining credit.

She's probably right...you're likely not entitled to a copy of the inspection report if they don't want to give it to you...But that works on your favor...Just tell them that without the report you don't agree to ANY repairs.

State laws favor tenants while state does not have rent controls it does have a powerful tenant union.Several cities impose tougher rules on landlords.

.#3 - I simply find it unethical representing the seller in this fashion.