I have found a handful of "gem" buys where I was so desperate to get the listing under contract that I paid 10% over full list and let the listing agent keep ALL of the commission, even the my portion as the broker/buyer.

I just did some bar napkin math to compare the Conventional vs FHA options assuming a 30 year term and purchase price of $500k:Conventional Mortgage:Purchase Price $500,000 Down Percent25%Down Payment $125,000 Rate5.5%Mortgage Balance $375,000 Payment/Month $2,150 Interest Portion of Payment $1,719 FHAPurchase Price $500,000 Down Percent3.25%Down Payment $16,250 Rate5.00%Mortgage Balance $483,750 Payment/Month $2,622 Interest Portion of Payment $2,016 The FHA rate will cost ~$300/month extra in interest.

I have the operating report for the previous 3 years and the numbers have not deviated much at all from the numbers stated above.Also, what are your thoughts on negotiating the seller to carry a portion of the loan to minimize out of pocket expense as far as a down payment?

Or we can install an ADT system for about $200 and ask her to pay the monthly fee of $50, or help her pay a portion of it.

And in total, I would collect about $10,000 down payment with a portion going towards the first months rent and the rest to me?

Texas and seller financing is a mess and the man to talk to is John Jackson on BP.LOs and CFDs are part of "executory contracts" in which the Texas State Legislature screwed the little REI guy back in July 2005.See http://www.lonestarlandlaw.com/Executory.htmlHere is a portion of a letter that I received from a great TX contract attorney.

The ball valves at harbor cargo have yellow handles - and they're about a large portion of the cost of valves at the warehouse or lowes.

The community bank will also consider a large portion of the rents received as income immediately, without having the tenant in the house for a year or more.

Rentals constitute a large portion of our retirement plan, meaning having all of our rentals in one markets puts our retirement disproportionately at risk.

Curious to know if I totally screwed anything up in this basic calculation.Purchase plus rehab = 125KRent15600 (1300/mo)Tax1350Insurance800Mortgage5400 (450/mo for most of purchase price)Repairs600 (I'm a handyman and will be servicing the property)Utils480 Gross Profit6970/125K = 5.5%Taxes paidRent Income15600DeductiblesTax 1350Insurance 800Mortgage Interest3636 (1764 principle)Repairs 600Utils 480Taxable Rent8734.25% tax rate2184 taxGross profit6970Net profit 4786 (399/mo) = 3.8%I am also wondering if the principle portion of the 450 mortgage payment is considered profit, which would change the net profit calc to this:Plus Principle (1764)6550 (546/mo) = 5.2%Thank you in advance.