Positive previous landplord reference.4.

Besides, Texas property taxes can really impact your returns.) 

When building wealth long term, rate of return makes a HUGE impact.

The rent doesn't meet the 1% rule but the potential for positive cash flow is there. 

After running numbers i'm looking at around $780/month in positive cash flow .The seller owns these properties free and clear and wants 5% interest and for me to pay any transfer/closing costs, i'm estimating $1,500.My question is, how do you pay down principal on a deal like this?  

The adjustment is more for leased, but even owned outright they signifigantly impact the value if the property downward. 

The rent does not cover the mortgage, not even close, so subject to isn’t in question.Without much equity I’m assuming I should not pursue and tread lightly w/o further damaging the position the landlord is in?

Well there's the law, and there's putting yourself in his position.

Your friend/relative will be 1st position lien holder. 

I am trying to acquire a property.  I have 10% cash to put down and can get a bank to cover 60% of the Value,  how does someone obtain the additional 30% from open market funds?