I wont be borrowing much from him but im not sure how much he should make when the house sell.  

If things go bad wont the first lien holder  get everything?    

If you use standard financing for an investment property you will need to put 20% down, AND its important to understand FHA requires you to live in the property to get the loan... they wont lend on investment properties.

I have come to the conclusion though we wont be so I'll consistently be working numbers and if the numbers are good, and they stay under budget with a bit of wiggle room then GREEN LIGHT!

According to the seller the property suffered fire damage to the kitchen and dining room.

There's people that own their own homes who wont water anything.

Is there a better way that wont get the almost always first question of "Is this legal?".  

Are you sure you wont be spending money rather than saving?

I wont touch a property unless there is a 50k or more spread in the deal.  

Banks wont negotiate and once a deal hits a realtor's hand, they sell a client on the idea that their house is worth more than gold, and it ends up sitting for months and the deal is wasted.SO HOW DO YOU MARKET TO INDIVIDUAL SELLERS ?