Make sure the rental income comfortably covers your mortgage, taxes, and other expenses.

My cold caller identified this lead and I wanted to see if I could come up with a creative finance solution in addition to an all cash offer in order to give the seller options.Location: Fresno, CABuilt 20104bd, 2 bth, 1600 sqftARV= $415kTheir current asking price for an all cash offer= $390k Their mortgage balance ~120k, interest rate is 4.51%Roof is original (14 yo), HVAC is new (replaced last year), no other updates or major repairs that he's stating.Situation:The husband states his family of 7 has outgrown their current home.

Following is the income for all the unitsRentsNew Rents Expenses Unit 1: 1800 sqft $ 975.00 $ 1600Insurance $ 6,000.00 Unit 2: 1100 sqft $ 900.00 $ 1100Taxes $ 2,728.00 Unit 3:  1100 sqft $ 925.00 $ 1050Sewer Charges $ 4,800.00 Unit 4(Apartment): 700 sqft $ 700.00 $ 850Vacancy $ 4,000.00 Total $ 3,600.00 $ 4,600.00 Repairs $ 2,000.00 Yearly Revenue $ 43,200.00 $ 55,200.00 Total $ 19,528.00 Mortgage Interest Only/m$1,460.00$1,460.00Mortgage Interest Only/y$17,520.00$17,520.00Current Income Projected Income Net Operating In $ 23,672.00 $ 35,672.00 Cap Rate4.30%6.49%Cash Flow With Int Only $ 6,152.00 $ 18,152.00 Cash invested $200,000.00$200,000.00COC3.08%9.08%What are your thoughts on this deal?

Do you do an online guidebook through them?

:) and our mortgage will go from $2,800 to $1,300 per month! 

Looking on a map or an online forum to find a location is a good way to eek out a modest return if managed well.

The seller needs moving money, there are oftentimes an arrears that has to be paid on the loan, there are oftentimes HOA fees that are due, there are title costs, there are escrow costs, usually there is deferred maintenance, you have to make mortgage payments out of pocket until you get a renter in there, you have to pay utilities and taxes, and you need reserves in case it all doesn't go as planned.3.

When I purchase a partial, I take full assignment of the mortgage/deed of trust and endorsement of the note.

They don't ask for a down payment, but they usually have higher interest rates, shorter repayment times, and stricter rules compared to regular mortgages.

Can I put the mortgage interest as a deductible for my real estate property in Schedule E under other section.