Financing that entire purchase price at 5%, which is reasonable for seller financing, will put you at a monthly payment of $4,026 a month, or $48,312 a year.Private lending is usually short term debt, 1-2 years.

@Catherine Brennan I would suggest getting an umbrella policy for the short time you have the property in your own name.  

Then you can also get the owner to sell you their house and try to negotiate a short sale with the bank.

I have been reading about Owner financing for a few hours and learned about Lease Options and Sub2.Before that I made them an offer hoping they owned the property out rightThe reason behind the offer is in February 2014 I had to short sale  my primary residence, fastfoward march 2016 I started learning in BP, April 2016 I started my LLC in REI.The way I saw this is, get this property with no money down, I can cut my monthly rent from $1,200 down to $800 or less.

They typically need to get off the contract during their inspection period and offer no inspection period or very little to buyers. 

If looking purely for investment purposes townhomes and single family homes zoned for short term rental are an option and may provide a more predictable occupancy profile provided it is properly managed. 

I have a question about short-sale properties.

Interesting, compared to this - "The National Association of Realtors estimates that the country’s supply of for-sale and rental units combined is 3 million units short of current demand."

If it's upside down, it's a short sale, with it's own set of requirements.

i just put an offer on my first place and continuing to take referrals for options. i will message you shortly. i appreciate any feedback!