:)thx all of you who've helped give your time and advice. what i realize now is just how hot our market is here in asheville, which makes finding anything that even comes close to passing the 2% rule very difficult, or just about impossible unless i can find a truly motivated seller. i've noticed on zillow that country records will state when a home is in default. i'm sure there's a lag time there. is there a way to get this information faster?

You should be able to find something in the 1.3-1.5% rent/price rule range. 

I am not overly familiar with your state of Arkansas but you can look to the state Safe Act and the federal Safe Act for the rules governing your activities.Financing a property you own can qualify for exemption to the license.  

I charge 5-7500 for this in the summer.NOW-HERE IS A RULE OF THUMB FOR ALL----------HVAC systems are like your cars,  (heat pumps) given care, most will last 10 yrs.they start to die at 15 yrs.

The rules are Agency slanted!

He owes 183k ruling out keeping the existing loan in place (right?). 

You have to set rules and follow them, otherwise tenants will walk all over you.

Nathan, FHA is a great way to go and as far as the one year rule... 

In some locations, this sort of lease back arrangement has ended up in front of a judge, with the judge ruling the transaction to be a loan in disguise.

.) , so let's go with the second option (my budget is a bit higher but not that much), I expect a net cash flow around 10% (after the 50% rule) and I am more of a buy-and-hold person which I believe makes more sense when investing from abroad... unless the market picks up and I'll maybe sell it in 5-10 years to re-invest....1031 I have heard the term but I am not familiar with it...