So here's my question: If you are in a private deal with a seller, no realtors involved, and the home value is X, but you're able to talk the seller into selling for Y, which is less than X, would you then be able to go get a mortgage using the difference between X and Y as the value of your down payment?

Does anyone know what kind of closing costs are involved when buying cash?

Depending on how many family members are involved and how many apartments you need, you could still potentially benefit from the other apartments.  

@Gary Alford  I know this is an old thread.the issue with the one I bought it was a mortgage not a lien.we deal with code enforcement liens all the time.. they are our targets.we routinely get them knocked down by 70 to 90% by just being nice and cleaning stuff up.end of the day though  there is profit and unconscionable profit.. 95k on a 195k deal is just not anything I want to be involved with I would just step aside and let someone else have it..

Are you currently involved in this or is it one of your future goals? 

The tourists may or may not stop coming in 5 years but waco is growing quickly on its own and has numerous reasons for its success that do not involve a tv show or a football program.In my opinion the best reason is small and accessible government!!

After I realized the squatters ran off due to the police being involved I contacted a property preservation company and had them change the locks on the home and place a lock box on the door.

I've had a limiting belief that you had to have a lot of money to get involved with investing. 

What they don't preach is how much hard work is involved, or how reputation is EVERYTHING....

Most people overreact to situations because their emotions are involved.