Looking at refi because expected rent would exceed refinanced monthly payment. 

Since that option would no longer be available I am assuming that I would need to save for a 20% down payment.  

I'd be carrying a mortgage payment of about $800/mo (which I could afford if I happened to not have any tenants at a given time.Any thoughts or directions that you all could point me in to make sure I'm up to speed on what questions I should be asking during the showing and what kind of costs I might be looking to incur that I should be watching out for.Thanks BP members!

We will have enough money for a down payment, and plan to use an FHA loan for the first property, however I currently have almost no income as I am taking very full loads in school to finish as soon as possible.

I think you ought to make their late payments as part of the deal so time does not become a problem.

Monthly mortgage payment is roughly 6000 not including property tax.

I would use the extra cash to make extra payments and if my calculations serve me well, I would get rid of PMI (another 450 or so a month) in about 6 - 7 years. 

Here are some idea: if the person that wants to invest can pull equity out of their home and use that, might be able to get a loan in that country with a sizable down payment.

More important than the down payment is that the property might not even be worth the principal balance on the loan.  

Hi Christine, I'm assuming they're behind on payments and that's why the owner is calling in the note?