need advice on this possible deal

[Eric L.]

Friend of mine is moving, wants to get rid of the house. I believe it's worth about 75k. He has a VA loan on it which he took out recently. I'd imagine about a year old. He would like to sell it to me, but I am "not supposed" to buy it with VA due to the non owner occupancy. Well, I simply don't have the capital to do a conventional at the moment so are there any suggestions? I thought about possibly offering master lease. I would guess one could rent the place for 8 or 900. Mortgage should be around 5 or 600(taxes and ins).

[Don Konipol]

I think you need a more in-depth analysis of the real expenses associated with rental properties.  The property won't be rented 100% of the time, you'll have vacancy loss.  If you use a realtor to find a tenant you'll have leasing fees.  Repairs and maintenance costs will occur.  Depreciation is a real expense.  It is an allowance for the cost of long term capital costs, roofs need replacement, systems such as hot water heater and air conditioning/heating systems wear out.  Legal issues and their associated costs have a way of coming out of nowhere.  As an owner of investment property your taxes are now more complicated, the $100.00 you were paying to your tax preparer is now $350.00.  Experienced real estate investors estimate that expenses, other than interest on a mortgage, will run 40 - 50% of rental income.  

From what you describe, you have a break even situation. Which is what you usually get paying anywhere near market value for a SFR.