The best quote that I've gotten is 9%.Basically, Dodd/Frank prevented lenders from securitizing and selling those loans, so they must be kept on the books.I'm assuming since you have four families involved that you would need some sort of entity to hold the shares, and that's going to make it difficult to find financing.

The owner owes roughly $125k on the house, and they are very motivated.  

@Brian Hollister Hey Brian,Everyone has their own specifics, but generally all buy and hold investors want to have some sort of cash flow per month.

He says the typical length of time in a note is 6-12 months, and sometimes longer if he needs to foreclose, etc.The plan would be for my wife and I to pay the up front costs (from our 401k self directed) for purchasing, and he does all the work. 50/50 profit split.We would be entering into a JV agreement.The big question is: does anyone (myself and/or the LLC we would be entering the JV with) need to have a license of some sort?

Other perks to coverage that you might consider: a package policy that covers your car insurance too (sometimes cheaper) and an umbrella policy for 1 million dollars to cover all sorts of things that could happen.

If it's an increase, all sorts of options are available to move forward.

My plan is to sort of start that transition by making my unit nicer and then start on the upper unit once I am done renting it out. 

It's amazing what it will do for your motivation and momentum when around your peers.For real estate investors in Oklahoma City, we have:1st Wednesday of every month "Coffee with Real Estate Investors"www.coffeewithrealestateinvestors.com1st Thursday of every month Millionaire Possabilities MPREIA www.meetup.com/MPREIA3rd Wednesday of every month Landlord Meetup www.meetup.com/Landlord-Oklahoma-City-Real-Estate-Investing-Meetup3rd Saturday of every month Real Estate Wholesalers Breakfast www.meetup.com/Real-Estate-Wholesaler-Breakfast4th Tuesday of every month OKC Real Estate Wholesalers Network www.meetup.com/Real-Estate-Wholesalers-NetworkFor entrepreneurship & business in Oklahoma City, we have:Every Wednesday morning1 Million Cups OKC www.1millioncups.com/okc2nd Wednesday of every month "Coffee with Entrepreneurs" www.okceg.com/pages/Coffee_with_Entrepreneurs4th Thursday of every month OKC Entrepreneur Group www.OKCEntrepreneurGroup.comMiscMultiple times per month "The Meeting After The Meeting" - Dinner with Entrepreneurs & Real Estate Investors www.meetingafterthemeeting.comI am a local real estate mentor and business coach so if you ever need guidance and accountability I might be a resource to you.

Dont become a motivated buyer !

What sort of "hassle" have you heard about on the buyer's side?