I have not done one but I was looking at this for a primary so my understanding is you still want to try to keep the rehab portion under $30K or maybe $35K to have it "Streamlined".

The question becomes can they pull up any portion of your account.

The Seller is no longer selling the 'whole loan', he is selling a portion of the interest stripped out from the whole loan and it really looks like a pass-through security.

Cash portion of sale write in whatever you and the seller have agreed upon.

. $1200/month rent $600/month mortgage (includes tax and insurance escrowed) 50% rule says expenses will be $600/month (This doesn't include the good points made by @J Scott about possible higher expenses for a student rental)So your cash flow is only the escrow portion of the mortgage payment at best.If the rents aren't under market and there is even your friends $3K estimate for immediate repairs this is thin at best.I probably would want minimally to have them sell it to me Sub2 (For the balance, nothing more), pay all the closing costs and let me get contractor bids on the work and give ME a check at closing for those anticipated costs.Even with that the only reason I'd do it was because I didn't have to have the mortgage in my name.

Use the search tool on the top right portion of the screen.

When the new lease is signed I'll require the remaining portion, $140.

Overall I found it to be quite underwhelming in my market, it often is unable to find a good portion of the comps at all, and the comps it does report tend to have inaccurate sales numbers.

There are more closing costs and a few stipulations but it also allows you to get 25 year amortization and the SBA portion of the loan (Bank funds 50%, SBA funds 40% and you fund 10%) is at a fixed rate. 

So, we’re trying to figure out how to do it all or at least portions of it….but I don’t want to cut our nose off despite our face and do something that’s going to hinder us from doing the next thing.