for example:Property Value: $100kSeller Mortgage: $100Kyou obtain the property on a subject2, you then turn around and sell with a wrap with the following:Sale Price: $110K (premium due to owner financing)Down Payment: $20KYou then carry a note for $90K that the buyer must pay offYou then apply $10k of the down payment to the wrapped lender, bringing the wrapped mortgage balance down to $90K, the same amount as the note you are carrying.In addtion to all that, the terms on the new note are created to give you a spread between the wrapped PITI & the buyers PITI (assuming that taxes & insurance are escrowed in).So, after the closing you have created (and extracted) $10K (minus any closing costs) in equity from the deal, and you also are now receiving monthly cash flow via your note and you have no property upkeep.DISCLAIMER: I have never done one of these, this is all academic.

After 11 months my run rate for cash on cash is close to 10%. 7.5% after renters insurance and property taxes and minor repairs this year ( I was a cash buyer) Do beware of any market forecast "Model" suggesting annual property appreciation be included on your return considerations.

Get title insurance.

My mother moved in and lived there for a few months then a tree fell on the house that she was going to be letting forclose and insurance paid for all of the repairs on it and the bank came back and took 40k off the principal and reduced her payments by 40% so she moved back into her original house.We then had this house that we purchased and had been remodeled sitting empty.

If a physical address is ever needed, you can use a UPS store or equivalent.Use liability insurance as the first line of lawsuit defense.

Some insurance companies won't insure them either.

With Pledged Assets, we will lend up to $5,000,000 or more at 90% LTV with no mortgage insurance!

Expenses (including taxes, insurance, maintenance, vacancies, and management fees) are usually calculated at a rule of thumb 50%, so a 2% rent is roughly a 1% monthly return or 12% annually (if you paid cash.

If the only reason you are doing it is to have access to MLS, there's other ways to get the information.Brokers have overhead that has to be paid for offices, phone systems, advertising, insurance, management, etc.

He recommended using that money to increase my liability insurance instead.