A prospective Lease-to Purchase was lined up to occupy the home and cover the mortgage payments in many variations of this scheme a portion of the kick back money was supposed to "protect the Investor" some of the bolder operators actually marketed this a a second chance opportunity for the cash rich and credit poor (People with income that was "difficult" to document) The rapidly appreciating markets allowed for substantial "equity spreads" the source of the "kick back money." i.e the FMV is 100K the seller has 45K into the property and would be happy with netting 18K profit, the change goes to paying all the closing costs and a gratuity to the buyer.

If I were to rent it, I could barely cover the mortgage but if I put it up as a lease option I can see a little more rent and profit in the end.

You need cash reserves to cover these unforeseen expenses.There are a bunch of people involved here.

He sought a bank loan that covered his remodeling plus his mortgage so my guess is he's eaten up his profit holding this house for 6 months.

What this will do obviously is get our house off the books as the rent will cover the mortgage, taxes and insurance for the 6 months, then at the end of the 6 months when he gets back they will supposedly buy the house.What flaws do some of you more seasoned investors see in this.

Unfortunately, if you have to shoot someone, the criminal will not only have holes in him, he'll be covered with lipstick, loose change, fingernail files, and whatever else women carry in their purses these days!!!

You get a quicker sale because the buyer can literally visualize EXACTLY how the house will look.You'll find REALLY cheap and Nice stuff on Craigslist.com & your price can cover the costs.

What are you comfortable with is the real question.Question 3: You may put multiple properties into an LLC then get one commercial loan (blanket loan) to cover all of them.

Along with that the developer will provide guaranteed rental to cover mortgage for additional 2 years.

It is possible to get a loan, usually hard money, that will cover both the purchase and rehab.