After the purchase, I'm thinking a transition could be made to a traditional 80/20 LTV Mortgage then rinse/repeat for the next property.Now, I can see the negative aspects of this in that a bad RE deal could really hurt my current investments.

Then I'm looking at the negative cashflow of: -1,594 +paydown of 4,768.41 and appreciation of 2% at $2,700 for a total of: $5,874 and my down payment was $27,000 so would that be an effective return of 5874/27k ?

. :)$1200+ PITI payment for a $1300 rent is a negative cash flow deal.

I only paid 1500 for it, so its basically a guinea pig to practice and learn.

I've been working at my local country club as a bag boy during the summer since my freshman year, and, although it is a great summer job, I only make about $3,000 per summer.

Not great. 750 p and i on a 30, plus t and i plus maintenance minus vacancy plus misc.

On my last rehab I only visited the property once.

@Scott Isley,Well, you're not going to like this.... but after owning several large Apartment complexes, and COUNTLESS nightmares, I sold them all and now I only invest in Self Storage: No Tenants, Toilets, or Trash...When they don't pay, I lock them out, sell their stuff, and recoup my $.

This may justify part of the premium...Problem is, I only have about $9,000 cash right now.

Simply tell them that you're willing to work with him in clearing up the matter to release the judgment that can have a negative impact on his credit and may increase his costs in conducting consumer business in the future.