To decide whether her townhouse would make a good rental, we need to know the gross rent you would expect to receive.

Resulting payment is per period.So, annual rate is 7%.

Yes, you can buy cash in an entity, then sell the entity, and of course, you will owe taxes on the profit (speak to your accountant).I hope this clarifies your original question on this matter as you received some good advice and some incorrect/bad advice.

Once a loan is in default and the deed is received in a foreclosure, the asset stops being a loan and becomes other real estate owned.

I've seen annual RE taxes in Philly as low as $120.

In other words, it makes the earlier cash worth MORE than you actually receive, based on the presumption that you will reinvest it and count that reinvestment return as part of THIS investment!

Taxes and insurance range from 2,500 to 3,500 annually on each.

I hope it's the first, in which case you are the one with the knowledge and the guts to put the deal together and your time and energy is worth charging high fees.After all they would not be receiving the built equity that they are receiving buy buying under FMV had you not brought them this deal.

You would need about $260K annual gross income to qualify.

I have already posted in REO, but have not received any responses lately.