There is clearly intent to purchase using a loan for the majority of the purchase, and then borrow back the down payment portion from your seller.

Here’s a quick overview of my situation:•I purchased my first BRR rental property for $81,000.

He purchased it a year ago for $325kDuplex listed for $396k Offered $350.

Full doc, 20% down on purchase and rehab, hard credit pulls, for a loan you intend to get in and out of.

The purchase price is 225K and property was built in 1910 around the Harrisburg, PA area. 

He has all the numbers and can show you how purchasing a home on a 30 year mortgage is wasting 100's of thousands of dollars because of interest, etc. 

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

@Bethany Travis, the short and straightforward answer is to pay a real estate attorney to draft a purchase and sale agreement with an exhibit to assign the contract.

Long term rentals is not working and the turnaround for airbnb is costly we are now charging tenants for electricity they consume.

When first starting out using a Buy and Hold strategy and with limited capital, do you think it's better to purchase a bunch of lower priced properties in lower quality / depressed areas or spend a little bit more but have less quantity or rentals (but presumably higher quality tenants) for properties in an area that is well known for being a "good" area?