I wouldn't have any interest in buying something like this to hold since it would be so far negative cash flow wise on a monthly basis.

You won’t get the metrics like the pay down or the returns on the second note this way but you can get the accurate cash flow.

If he is a contractor, why not buy the house personally and pay him a fee for his services.If hes a realtor, why not just pay him a commission to buy the house.Best of luck Thanks, it's because of our terms, I am not putting any cash down.

I ended up getting the listing as an agent, but only after I exhausted all possibilities of a cash sale to one of my best investors/partners.  

Floating rate loans may help cash flow early in deal, but put a lot of risk into deals. 

If you need $5,000/Mo to replace your income and each rental property generates $300/Mo cash flow, you will need to acquire 17 properties ($5,000/$300).

But if you do want to invest out of state where cash flow is higher, I think it's worth narrowing down where you think the best markets are and then find a way to take a trip for a couple days or so. 

Some of the repairs I did were from handymen or small contractors who do not have an invoice system or estimate on paper for cash payment like painting and rent ready repairs.

.- at year 7 if value appreciated a lot, can i do a HELOC on it and use that HELOC to pay off the balloon - probably not due to lien being secondary etc on helocYes on the HELOC, but it would probably be easier just to refi and pay off the seller, and cash out more money too.Hope that helps and good luck!

IMO it’s hard for me to sell a great cash flowing asset.