Some of the things I've done on deals: They get: equity in a deal A new property to manage I get: someone to sign on a loan with me (if they have a large balance sheet and good liquidity and you don't then this is a good strategy for starting out) alignment of interests on mgmt (since they now get upside) additional equity in the deal (if they raise it and/or invest in the deal themselves) But, proceed with caution: As @Carlos Flores said, you need to be able to fire them as a property mgmt partner if they don't perform.

The list is compiled of only names, addresses and delinquent balances.  

@Alexander Serrano Forgot to mention, generally lenders will also be looking for six months reserves in the form of cash or marketable securities, 401k balances included, to cover your income property mortgages.  

I need to go to 75% LTV  of the appraised value in order to pay off the balance to HML and recoup my down payment and holding costs.

The lender is not likely put your limit below your outstanding balance.

She is inheriting their loan balance of: $420,247 interest rate: 3.25% and monthly payment of: $2,368.33.

Don’t forget any improvements and that you may have bought it at a discount because the old owners where motivated and you might find its worth even more.Now over those two years you have also been paying that old mortgage of $1099.33 each month and the principle amount that you owe on your loan has been reduced by an additional $3,965.96, leaving you with a loan balance of $146,034.04.

Do you drag it out for 25 years to increase your monthly cash flow with little pmt on the balance.

Create an Input Sheet of questions to ask sellers - work from this when making calls -There are three (3) important things you need to learn from a seller --About the existing FINANCING - how many loans - the amount of liens if any - the terms (balloon payments, interest rate and status and balances (current - payments due - foreclosures or tax sale pending)Next about the SELLER - why selling - where moving to - how fast do you want to settle - what are they going to do with all that cash - how can they help with financing - GET PERSONAL talk about yourself a little, but get them to talk about their job - their hobby - their work - their selling motivations.Next the PROPERTY - does it need any work, are there any violations - what are properties selling for in the area - how much would it take to fix or renovate the property - is it vacant?

If you know you'll hold it shorter term, don't pay a premium for a long term loan and focus on an adjustable.If you are confident in having a short time frame to hold, you might consider a loan with significant negative points, resulting in a sizable cash bonus covering not only the closing costs but giving you some cash back from the lender (or pay down your balance a bit), in exchange for a higher interest rate.