Holton is the deviding line between the better and the not so great area

In this strategy the investor may borrow private money to purchase the property at X%, then seller finance at a rate X+% along with getting a downpayment on the home. 

Make sure your purchase agreement clearly states you’re getting deposits, any prorated rent, and any reserves you want included.

Can you do a refinance on each of the properties?

Quote from @James McGovern: Is it easy to evict a buyer who purchased via Subject-to?

@Trevon Burton many new investors are figuring out what investors BEFORE the Great Real Estate Crash were forced to understand - paying market price for real estate makes it difficult to cashflow.Old saying - You make your money when you buy a property.Which translates to, the future profit potential of a property is defined by the terms you purchase it with (price, financing, down payment, interest rate, etc.).I paid 10% below market for my first rental (a duplex) and thought it was a deal.- It turned out to be an okay purchase over time.Recently paid full asking price for another duplex, but got seller financing with a low interest rate, so the property cashflows.We'd need more info on YOUR purchase to give you any feedback.

If the STR is going great, you have equity and good income, you might be able to get someone to establish a business line or credit or loan for you that you could pay off with a cash out refi on the new property when you finish.

If the flip comps are soft, don’t bank on resale; instead, lock a clear buy box and scope, then raise private money or use hard money for purchase plus rehab with a refinance takeout once it’s rented and stabilized.

Ask yourself why the experienced investors with deeper pockets haven’t already purchased it.

At least as far as lenders are concerned.The property is worth what other comps in the area say it is worth.I did a survey of about 8-10 different lenders across the board and the answer was the same in all cases.So, you can pay the premium, but it will come out of your pocket vs the mortgage.You can also look at a DSCR loan but still, the house is worth what the comps say but the purchase will be based on the revenue of the STR.