Again, i used the percentage method as a first go round.  80x12x10 = $9,600So to sum up, my GSI calculation for the deal So based on my new #s, it looks like the purchase price should be around the $400k mark, not the $650k mark based on the provide cap rate.Now reviewing the pro forma #s in a rental calculator, this deal does cash flow (assuming 20%down and financing).   

I thought about direct mail as the best method.  

@Or Yeger  quality first you will pay differently for in different markets..what your looking for is Yield the Yeilds will be dictate what you pay for the note.Many quality performing notes that are say 7 to 10% will be sold at Par.In my ever it to be humble opinion buying a note that was purchased as a NPN and is no performing is very risky.. the chance that you will be right back into NPN status is pretty great probably 50% chance or better.I like performing notes with good solid borrowers not notes were the borrower has already defaulted as they now know how its done.. plus ower occ notes have all sorts of rules and regs you have to follow .

I'm always wary of 4 places due to quality of tenants and the hassles being their landlord

I'm very interested in this buying method and would love to pick someone's brain on this topic.

You lose 6 months time of cash availability (perhaps 4.5 months since it does take time to get the refinance) where you may have been able to buy 2 or 3 more properties in that same 6 month time frame using my method rather than buying with cash.With my method I pay no lending costs with my first purchase since I use loan documents already created by an attorney for another loan for which I participated. 

Are there any creative investing methods that could be utilized in this?

I have seen a lot of their rehabbed homes but the construction work was usually not very high quality.  

@Josh Braun, I like your category method.  

No sales pitches, just quality networking and short guest speaker segment to help us learn.