Cause as I see it -in sub2 you don't have to put money in the deal + the rate for the mortgage is lower most of the time, but the work for find the deal and get the deal done is hard.with brrrr it's easier to find the deals, I mean you can also find it on MLS but you have to put money of front and get it back when you refi...so I'm little bit confusedthanks

Homeowners at risk of losing their property due to missed mortgage payments are often desperate to sell before the bank takes over.

A fund (like a 506c) that @Chris Seveney and @Evan Polaski pointed out allows you to pool resources and spread risk across several projects.Def more attractive for investors.Pro tip: SEC exemption might be required so make sure you know your sh it and value prop here.

This is assuming there are no problems.With that said, there is risk in everything you do. 

That means you'll have to put in at least 20% down.

The game does not include the little boarded up houses :) Now what Aaron is describing could be where one of those little green houses are if you passed on the medical office worker crowd.Lets take these 3 options below and put aside the cash flow on paper part for a sec.Five years hold scenario:Medical renter 70kAarons 40k guessingBoarded up zone 20k Let say the medical center house only turns over 2 times in 5 years, no issues, one month vacant.  

Even though I was cash challenged I held onto my house (putting past due payments on the backend) and had equity to sell, pay off debts, and get my credit in check.

We plan to rent out the basement on a medium-term basis - we are going to install a full kitchen down there, put a lockable door between upstairs and downstairs, fence off a private section of the yard, and there is already laundry down there, so it will essentially be an up-down duplex with a separate walkout basement entrance.

I'm playing devil's advocate here so folks can know the risks of a seller-finance deal.

@Patrick GoswitzI guess I am mostly confused, I don't know why anyone would put $100K down on a seller finance deal.I obviously don't know anything other than what you posted, but something seems off.