I want the owner to let me wrap it with another loan with, let say a 5 years balloon.How much Down should I offer to make it fair for the three parties involved?

If variable I would contact your mortgage company to get a reduced interest rate and a fixed loan.There are programs to reduce the rate even if you are not behind yet on the mortgage.You need to reduce the debt service so it doesn't kill your income.How much would you need to come up with to sell this property??

If this is a Section 8 tenant who wants to do a contract for deed (yes, there is a program according to this Federal Reserve Bank of Minneapolis article) make sure you know the guidelines of the program.

I used to run the business personally but as I became more involved in real estate I brought in a partner who runs the entire operation now.

If they were, it would be a rather small task to program that computer or train those "minimum wage people" to set off warning bells anytime the payer on a mortgage account didn't match the original name on the loan.

I'm not talking about "guru program" books, selling only one part of the puzzle.

As far as HUD is concerned, not all departments that administer the program are run the same.

flipsbuy and holdnew constsfrsaptscommercial I'm involved in all of these, and currently have 5 spec homes under const in 2 different states.

HAS ANYONE DONE A MASTER LEASE OR LEASE OPTION TO CONTROL A PROPERTY THEN RENT OUT TO SECTION 8 TENANTS GIVEN THE GUIDELINES FOR THE SECTION 8 PROGRAM?

Only presenting the rational behind my willingness to get involved with low income properties so that others(reading this thread after your comment) that may not have the capital that possibly you had to start with, or don't feel comfortable with too much leverage can have food for thought from the other side of the coin.