Some banks do this as a way to build a relationship with a borrower and to bring in extra money.

Even though, I am experienced; when I added a partner; I couldn’t get Fannie/Freddie loan.

When rubber meets the road, these low-cost/low-rent properties only make sense if you're turning and burning them, or are adding them to an existing portfolio where you have sufficient reserves already.I've got a property I am looking at that rents @ ~1750 for 2 units, so taking 10% for CAPEX -- which is an estimate on my part, good, bad, or indifferent -- sets aside $2,100 per year just for CAPEX.

Any tips on what else should be added?

Thanks Bob.So, use the UPB to make sure it will work with the numbers, but the estimated payoff difference is an added bonus!

Here is how I see the deal.Asking Price- 600,000# of units- 13 Gross Operating Income- 71,820less Taxes- 3087 Insurance- 2310Repairs- 6875 (added 25% to estimated price, )Utilities(common area)- 400Misc(pest, snow,landscaping)-2300Net Operating Income 56,848lessMortgage Payments 46,800Cash Flow 10,048Now I will not be offering $600,000 but really wanted to check with some of you experts to make sure I'm not forgetting anything.

He has told me that two good ways are to put a classified ad in the paper (and/or craigslist) and say "Rent to own, low downpayment" or "no bank qualifying, rent to own" or something like that.

When we asked him to come out and fix the electrical problem our new electrician told us about -- a problem he had caused, he added back the $15,000 to our bill and told us on a Friday that if we did not agree to absolve him of any further obligation it would be payable immediately as of Monday at 5 pm.

We have no other debt.My thought process is to pay off the rental property with the smallest mortgage as fast as possible with our extra cash flow, then use that rental income to pay off the next smallest mortgage of another rental prop, and finally when that property is paid off we want to use all the rental income to pay off our personal residence quicker so we can retire without this giant mortgage payment.

The ad should read "Owner Desperate, Must Sell Now, Please Call 555-555-555"Or "Motivated Seller, Take Over My Payments, Call 555-555-5555"Jason R.