Another issue is a tenant is still restricted to the use of property, making improvements and other aspects that require an owner to perform, like in contracting and obtaining building permits.

@David Wiebelhaus The selling agent will usually say anything they can to get you to buy to be honest, so I would pay close attention to performing my own due diligence.Moving along, I think the numbers look alright.

There is a limit as to what you can pay them for services performed.

Before you make an offer, you should perform a complete {DCF} analysis of the property to know the upper end of your purchase range to achieve the cash-flow / returns you desire.

On non-performing notes such as these, the collateral value is much more relevant than unpaid balance.Please take the advice from a Fund Manager that manages non-performing notes for a living and been in the business for over 20 years.

Via Delayed Financing, a buyer can purchase a home with cash, make the necessary home repairs, and then perform a cash-out refinance on the home's existing equity.

On top of what she mentioned, they are going to look for a solid DSCR of 1.25+ on the property performance.

A sale contract sets obligations on both parties to perform, if a seller sold while under contract they could have legal consequences as the sale is between those two parties.If you do a sub-to, title passes so the owner can't sell again.A first right of refusal can be used as well and actually tie up a property better than an option contract.Need to study the types of interests held by owners and tenants and conveyances of those rights and these matters will become more clear.

Give yourself a little time to see how your first purchase is REALLY performing.

Once you have a few deals under your belt and know your market, you will know how a property should perform and wont need to look at the sellers tax returns anymore.