Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

******************************Current Loan Bal - $315kMortgage Pmt - $1344/mthProp Taxes - $840/mthInsurance estimate - $300/mthTotal estimated PITI = $2,483/mthHOA - $124/mthTotal Monthly Expense (not incl, Vac & Coll, Mgt, or Capex) - $2,607************Estimated Monthly Rental Income = $4,000 to $4,300Estimated Net Income - $1,393 to $1,693  ($4,000 - $2,607, etc)Annualized Net Income = $16,711 to $20,311***********Estimated Current Sales Price = $830,000Est sales cost of 6.5% (5% commissions + 1-1.5% other costs) = $53,950Est Sale Net Proceeds - $776,050Est Net Cash (after loan payoff) = $461,050 ($776k - $315k)******************************Est % ReturnsAs a Rentalbetween 3.62% to 4.41% ($16,711 net inc/$461k net cash from sale, etc)Again, this does NOT include vacancy, collections, management, or capex, etc.

If there are 100% loans... why isn't everyone doing this?

But the ones that did had very good W 2 so they had the cash and income to qualify for loans.

I'm wondering how private lenders get taxed on their earned interest as they loan money to RE investors.

NOI, and thus cap rate, feeds into how much of a down payment is required b/c it feeds into the "sizing" of the loan.Many asset classes, like apartments and offices, have less than ideal in place cap rates today, so you need 35% or 50% down to buy them (unlike a DTI-based home loan, your personal W2 income cannot be used to significantly offset).

You'll want to be able to obtain balances, confirm payments were received, obtain payoff statements, etc.Ask your friend to share the username and password for the servicer's websiteI recommend using a loan servicer to collect your payments and disperse payments each month to the underlying mortgage servicer.

What’s a Wrap-Around Mortgage Loan?

Unless, like he mentioned, the house is in poor condition and won't qualify for a bank loan that a typical buyer would need. 

I was recently laid off from my job and have three issues: 1) No way to get a conventional mortgage 2) Need a place to live, and an advantage: sizeable savings on stock, bonds.I want to start investing in RE (ideally multifamilys), but for now I want to start small: buy a condo to live in, and [whenever I buy a multifamily I could move to] rent it.I would like to evaluate my high-level strategy, and get your comments:* [Soon] Get a "securities line of credit" worth around 15% of my savings.