Now the building is sitting there, down to the studs:-550k House ARV-3 units rental at $4500 to $5000-140k owed on a mortgage-105k renovation costRequirements:Her-No capital gains tax for entire sales priceMe-Buy and hold-Deed in my name upon her death-Low Down, Monthly payment 2k to 3kWhat is the creative way to structure this deal so that these requirements are met?

It means that the location of a property is incredibly important.Imagine you have a beautiful house, but it's in an area far away from schools, parks, and stores.That might not be an ideal location for most people.On the other hand, if you have a smaller house in a safe neighborhood with good schools and easy access to amenities, that's a great location.Why is location so important?

I've never done a deal in prosper TX but I've done some in San Antonio, and a couple other sub markets, and if we consider say $30/SF annually in rents (thats usually what I'm seeing on the low end for new build retail space) can equate to an additional $60K in net rental income (doesn't include increases or NNN's etc) annually if you keep the 2K SF. 

The headache of managing it, the low appreciation, all makes the cap rate not as attractive as it looks. 

Some of the prices now are unsustainable and it is easy to think you're getting a great deal only to see the neighborhood totally disintegrate.

It seems like you would need some money or you could run into some big problems.When you buy off market using Subject To, you are taking over their loan and the low interest rate.Yes, you do need some money to do Subject To, there are closing costs and set up costs, but it isn't nearly as much as buying using bank financing which generally requires 20% down.

Thanks @Bonnie Low!

I am focused on 3 bedroom, 2-3 bath homes in B class neighborhoods that are under 150k and require minimal renovation (this is my first investment purchase). 

I’m not surprised by this because all of their estimates were low, so I respond that I’ll take care of it that day.

I am new to the Chapel Hill area, so I am open to advice, but it seems like the Mebane, Hillsborough, and Pittsboro areas are attainable at a low price.