You are right that I should be careful of how much I'm losing while still being fair.

Yes, the owner was starting to let it go downhill and was going to start losing money.

I may know a few who can get there, but you may lose out on other terms to accommodate.

Aren't you concerned the fund will drop and you will lose before you need to liquidate for lending out?

I am scared for sure and losing motivation. 

-Specs: 3 bed, 1bath in Bristol CT1,095 sq ftIt has another lot attached to it, I believe behind the property, I'm going to see it this Saturday-Taxes: ~2500/yr (this doesn't include the other lot, I need to ask what he pays for them both)-Initial home offer: 150,000 (defenitely could talk him down)Needs a 15k down payment (nothing lower)-Estimated rent:1200 if rented as one unit I'm considering piecing out the rooms, might be able to get 14-1500 that wayAs it stands at that price and a normal 30 yr fixed rate at 4% and money set aside for capex, maintenance etc, the deal is losing about 50 bucks a month, however this is a seller finance and a lot of numbers can be worked on.I'm thinking of offering 125,000 (before 15k down) with a a 40 yr fixed rate at, maybe at a little under 4%, these numbers look better, leaves a little over 150 dollars in my pocket and a little over 10% Cash on cash return.Do you think this is a reasonable offer to make in such a situation?

Also if I don’t take the opportunity to learn the business, then it’s easier to lose money in a bad investment or fund.

By the time they are done juicing up the rate and fees to break even and not lose money on the loan, you may as well just get a hard money loan.

I’m setting up an LLC by the end of the month so I don’t lose my momentum.

As a normal rental, you will definitely lose cash flow when comparing to rent by the room.