Assuming youre a first time investor, I would expect to have to put down 20% of the purchase price + closing costs in cash at closing, and then you'll need cash both to finance the rehab until youre reimbursed by the draws on the rehab loan, as well as for carry costs (loan interest payments, utilities, taxes, insurance, incidentals, etc).

Quote from @Jeff Green: When you did the 1031, the $500K gain from House 1 didn’t disappear — it got carried over into your replacement propertiesIf you sell House 2 later without doing another 1031, you trigger:•the deferred $500K from House 1 plus•the new $100K gain on House 2Total taxable gain = $600KThe full $500,000 wasn't deferred from the 1031 Exchange.She sold $700,000 worth of property and only replaced it with $500,000($200,000 + $300,000).She should have a conversation with her accountant because it depends on multiple factors such as how much depreciation was taken on the property, how much basis was allocated as part of the replacement properites, etc.

Many investors I work with also carry an umbrella insurance policy over their LLCs for extra protection, and a good real estate attorney can handle the setup quickly and correctly.

People get too carried away with living completely for free, but literally cutting your living expenses down at all is still progress. 

If someone is exploring seller financed dispositions and working with tenant buyers, the risk profile is simply not the same, but still carry risk.

The seller agreed to carry the remaining $170,000 as a second note at six percent, interest-only, for five years.

Carry on. 

If the lots are being sold at a loss, there would be no tax due on the sale, you’d have a loss carry over for possible future use.  

The next step after this post is going to be to propose that the seller carry 5% on an accelerated schedule, but I don't know what their appetite will be for that.If none of that works, I'm afraid I'm going to have to walk away from the deal.

I’ve been analyzing different notes lately and noticed pricing varies widely depending on LTV, borrower history, and property type.Curious how other investors here set their pricing models.What factors carry the most weight for you?