My question:If I were to seller finance and then raise private capital for the rehab, how would I pay back the lender loan other than chewing through income from the rentals since I would already be paying the seller on the finance?

After 32 years in Electrical construction and project management I have decided to retire.

Did you have the rental income coming during the first year you owned or it was vacant? 

Now, I know you were asking about rental income...and that you can find in the comps too. 

Seller financing is a great way for the seller to avoid a lump sum capital gains tax, and still make steady/expected income on a property even after they sell it. 

If you want the income lending/lending funds would probably be a great option, but there is rarely any equity appreciation.

This means your monthly rental income should be at least 1% of the property's purchase price.

Yes can definitely get 100% financing of the construction no income no doc . 50% of the land cashout to cover closing costs 

I wanted to obtain a rental to gain passive income.

It's a great sign that the tenant is *asking* you before letting his girlfriend move in so you should treat them as any other tenant application: - credit app- background check- income check etc.