This is a good opportunity, but you’re right to slow down and think through structure before rushing it.On seller financing, having existing mortgages does not automatically kill the idea, but it does complicate it.

Understanding zoning, ADU regulations, and how rental income is treated by lenders is critical before going under contract.The biggest key is running the numbers conservatively and structuring the financing correctly from the start.

I patterned this structure after some other larger operators I've worked with. 

I’ve been learning through YouTube, podcasts, and forums (including BP), but I’m finding that while there’s a ton of information, it’s not in a structure that I personally need to learn methodically. 

I intentionally structure my loans to pay off as quickly as possible, which allows for maximum optionality later. 

That’s why investors in commercial real estate ( STVRs can be structured the same way) looking for passive income use triple net leases on their properties over 90% of the time.If in doubt check out another hospitality business, hotels.

Seller financing or a lease-to-own structure can work, but it depends on a few things: their remaining loan balance, interest rate, and comfort level with becoming a lender.

This transaction began as a straightforward Morby Method structure, but the seller has since expressed a desire to complete a 1031 exchange.

For example, under the “Refrigerator” column, the following information is typically stored for each unit: Manufacturer Model Number Serial Number Color/Finish Purchase Date Warranty Status/ExpirationThis structure keeps all key data organized, easily accessible, and tied directly to the individual rental property.

Cash for keys can be effective if structured correctly with a written agreement, move-out date, keys exchanged for funds and property left clean.