However we see light at the end of the tunnel: we can pay off the mortgage in another 2 yrs and avoid the balloon payment, then we calculate finally earning profits during the 6th year.

3) Do I need to have an actual company or can I do this as a private individual?

While I do not believe we have seen the last of the foreclosures, as I recently heard that 60% of multifamily bridge loans nationwide are not paying their mortgage, I am skeptical on whether or not we will see a massive fire sale of multifamily properties.

When I do the math on renting out a property, like in Texas, for a 1 bed and bath and compare it to the median rent for the area, the rental income doesn't cover the entire mortgage, property tax, fees, etc., of the property itself.

Looking into cash-out refinancing and DSCR loans and all of that but I'm getting ahead of myself as I don't even have the 1 yet lol.Nobody in my family has any experience with this sort of thing so I'm just hoping someone can give me their opinion on if this investment makes sense.The home is currently being rented for 2900 total (all tenants are month to month and have been there about a year each) and my monthly costs would be 1,200 included taxes, insurance, mortgage etc.I am considering putting the home on section 8 because the fair market rent would make my monthly rent 4k+ but I'm weighing the pros and cons on that avenue.From what I understand the biggest costs to me as a home owner would be a new roof or fixing the pipes for any reason..

I bought my first property with a private lender, paid cash.

Howdy BP,Kindly seeking advice & feedback on a deal we have privately received as of late: not sure to ditch or ride the storm!

If you rent it out for more than 2 or 3 years and then sell it, you have to pay cap gains on the profits.I'd also run the numbers on the house to see what you'd get for rent and what all of the costs are associated with the house (property taxes, insurance, repairs, vacancy as well as mortgage payment). 

Market rents from the appraisal and/or the actual rents need to cover the mortgage payment, property insurance, taxes and HOA (if applicable).4.

And if you dont actually do that, as @Matthew Paul said, the Baltimore States Attorney was just arrested and convicted of mortgage fraud for not meeting occupancy requirements of a loan for a property on a short term rental.