It's a 1600 sf house with 4 bedroom and 1.5 bath.I've had three buyers fall through and I'm running out of cash on that property to throw around.A guy has been calling me for 6 weeks about renting to own.He's offering to give me 2k downpayment and 900/month rent.  

Klamath Falls, OR 97603Asking Price: 39,990Est ARV: 95,000Down Payment: 9,975Renovation budget: 25,000 (probably too low, lots of sweat equity)Expenses (monthly):Mortgage: 151.63Property Taxes: 97.25Insurance: 16.67Property Management: 80Vacancy Rate: 40Capex: 80Results:Total expenses: 465.54Net Monthly Income: 334.46Annual Income: 4,013Gross Yield: 24.06%COC: 10.97%Exceeds the 1% rule

The liability falls on the owner of the property and not the mortgage company.

He and his attorney had a fall out and the attorney took over the single unit.  

The $275k - $300k price point is right along with average to median prices which, absent a significant down payment, tend to fall outside of acceptable profit margins from a buy and hold perspective. 

That way, if something happens and we can't do these medium-term furnished rentals, we still have a cushion to fall back on. 

I am house hacking a duplex I purchased this fall

I am also noticing that some of these buyers loans' don't get approved and the deals fall through 45 days or more down the road due to the buyer not being qualified.

I would consider a multi unit property too if the cards fall that way.

They seemed to be happy and they nodded in understanding.THE SECOND MONTHSomehow during the second month, when the newness wears off and the happiness falls into a routine, the new tenants become confused.