These deals are often attractive because you can close quickly, do not have to bother with the headaches of a traditional bank, and can structure the note differently (e.g. interest up front, balloon payments, etc..).

The debt includes student loans and car payments of both me and my husband.

I put down 5 percent of the down payment on a duplex that cost 290k, once I moved in the mortgage was 1589, I rented out a room for my friend for 650.

Is there a way for us to suggest that the tenant can break their lease without us getting stuck covering the payments?

I'm purchasing a property and taking over the tenant who is currently in a month to month lease, always behind in payments, does not live in the property, but does state in the lease agreement he can store stuff at the property.

What I would receive if he paid me off,  NOT the lifetime (20 years) of the $1150/mo payment.  

If just the down payment, do you have the primary lending lined up?

Is the 1% computed on the asking price or is it calculated on asking price minus down payment?

you would be changing mortgage payments from roughly $955 to $1432, another $477. with taxes and other expenses, could a buyer make enough money renting it to be worth buying the property for the extra 100K

They owe the rent payments to you since you now own the property.