The difference of fair market value versus what you pay would likely be considered a gift to you, which may require the filing of a gift tax return, and would eat into their lifetime exclusion depending on the amount of the gift. 

I look for 10% COC returns as you can see in the model and per my analysis, you would reach that by lowering your offer.AssumptionsDownpayment: 20%Closing Cost: 6%Amortization: 25 yrsInt Rate: 5.3%Occupancy: 90%Purchase price: $240kPurchase Price: $160k* I hope this helps and makes sense.

When he returned I issued him a non-renewal of lease notice and he had 30 days to vacate.

Just helpful criticism.The deal is a little light on the cash return at 8% but not bad.

You could leverage that and purchase a 1 million dollar property, or if you are accredited you could invest that passively with a syndication and probably see a 12- 15% return. 

What would be ideal is a small single family residence, maybe even a mobile home we could rent, with a small yard for the girls. 

OK just curious here, how many guys/girls start super early or late.

If your skill set is fairly well developed, and you understand creative finance, then making 10% is a terrible return. 

I don't know if you could make enough profit and still have enough to make the investor's risk verse return worth it.

I use them for insurance and have been happy with the service, but hear they can be slow to close during the home-buying process.Are there any neighborhoods i should be focusing on to maximize returns?