Obviously he's motivated.

You could alleviate the issue with estoppel letters (letters to the tenants asking what the current terms are that they are living under, to include rent obviously, as well as other terms).

In my previous experience, the seller doesn't want to pay a penny, for obvious reasons.

I obviously needed to fix the air conditioner prior to renting the property because central air would be considered a 'must-have' at the price point I was renting at.

So theoretically, end value could be 3.5-3.9 million end value.I obviously would lean towards the apartment option since it utilizes the value of the lot better. ( I really like how seattle does the FAR ratio system, that way a property becomes more valuable per square foot the larger the lot is).Again, I am totally new at this, so I am wondering if I am getting over my head (well I know I am but wonder if it is worth a shot).

Any templates or suggestions would be a huge help.While I'm posting this, another question: Obviously, people with higher equity in their preforeclosure home obviously care about it and would like to see themselves getting OUT of the foreclosure situation, and holding the home.

You obviously need to know the market rental rates and have an idea of rehab costs.

I generally have wanted fully occupied, for obvious reasons, but this is too tempting.

Obviously a title search and any type of inspection of the property I can do but what else?

Interest paid during the life of the loan doesn't have to be paid again at loan payoff (somewhat obvious, I guess).An interest only loan is not amortized, so the use of that word is not entirely appropriate in this context.Additional funds, again depends on lender, but I would include all monies in the one and only loan created at closing with a portion released through the closing agent as the rehab progresses.Adequate earnings, whatever is in the promissory note is adequate, as long as it's legal.