I’ve found that splitting the equity and giving financially distressed owners reduced rent until they can get back on their feet to be readily acceptable.  The key is to never give a seller an Option to repurchase the property under any circumstances.  This has been construed to be usurious practice in most States.  An owner who is having trouble making payments on a $55,000 loan balance on a $150,000 house might be delighted to sign over half the house to you in return for your making all the payments while he continues to occupy it.  Now, the plot thickens:  Let’s say that you would be making all the payments; It would be only fair that he pay you fair market rents for the half of the house that you bought. 

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