He owes $1400 in delinquent property tax and said it is otherwise unencumbered.He printed out a 1 page bid sheet and wants $500 upon winning and the rest within 24 hours, then he will produce a quit-claim deed.The owner also mentioned that only 4 people had inquired.It needs a lot of work, so I am planning on a walk through with my contractor this week.

When debt service is discussed properly it only refers to the principal and interest or interest only payments on the outstanding debt.

My cap rates are always lower since I take into account ALL my operating expenses:-property insurance-tax-maintenance/repairs (10% of rent)-HOA (if applies)-property management fees (10% of rent)-vacancy (depends on area between 10% to 20% of rent)Basically, when calculating cap rate I take into account all expenses except for mortgage principal and interest.

She would owe taxes (and penalties, if applicable) on the value of the account that made the loan.See Pub 590 Prohibited Transactions

I've purchased about a dozen short sales, and the price the lender will accept generally has nothing to do with the list price or what the seller owes.

my brother and I live here now,it's been 6 months owing it.

If you ever get a tenant that owes you multiple months rent you will sorely regret this policy.

I'm just looking for a logic check, not actually trying to get to the exact $ on this.Idea Take a 401k loan @ 4.25% to pay down the principal enough to get me under the 78% threshold on month 60.Month 60 with no additional payments made prior I would be at $149,800 or 90.7%. 128,700 is the magical 78%.

Lender gets everything at payoff, principal plus unpaid interest, plus payoff demand fee, plus recording, plus etc.

This way if they life happens they owe 2 months rent and 2 months notice.