Mention Buying Back My Note To Surviving Beneficiary After This?

[Burt L.]

I've learned the individual who sold me a 4-plex on owner carry a few years passed away a month ago. The promissory note will transfer to his only child and he wasn't married. He was a fine, personable older fellow but had a habit of sneaking in persons not on a lease as he did with me when he was on a post-sale occupancy agreement for 9 months. He was a likable,  lonely guy though these were street-people he took in and who were of the worst character such as drug users. I evicted the first person he brought in and not him, but learned that person was replaced with a former daughter-in-law, who was also a user. 

His subsequent landlord of 3  years also learned about bringing in drug users after this fellows passing and stated to the daughter that he had damages of $20K and that the promissory note I now pay to the daughter has value and that he should pursue it for damages -  its the only remaining asset of the estate. I don't think he will as dealing with a tenants passing is difficult and I believe his damage  numbers were inflated as he did the fix himself over the the last month and can't bill for his time. He indicated he could pursue it but probably wouldn't, in my conversation with him. He had every reason to be upset. 

I had gone over to see why the April payment hadn't been deposited and saw the landlords note and number on the door - he had never called me to check references 3 years ago and I would have been in a difficult situation on what to say.  Apparently this fellow eventually died of shock after being handcuffed on a drug raid of the people he let in. He lived on life support 3 days and passed in the hospital. 

The current landlord brought up the subject of the promissory note being a salable asset to the sole heir, the deceased's daughter. I would like to buy the note as some point and believe it has more value to myself and can pay more than a note wholesaler offering a low price to her if/when she goes to shop it around. I may simply get a notification that the note has been sold though she hasn't started the Colorado process to become Personal Rep and he died without a will, but becoming the PR cab be done quite quickly here and she can sell the note without mention. 

I don't think she knows that about $3200 of the payment each month currently is taxable interest income to her -yet- but still a good income while the principle of $1K per month  isn't taxable. It was at 5.5% on a 30 year with a ballon at 20 years and all to go to her if he passed at anytime.  He insisted he didn't want to pay taxes on an outright sale or pay a Broker. He wanted it specified in the sales contract that that it was to go to her and she got  a copy of that contract. A sales contract doesn't transfer title of the note upon his passing, but she is the sole heir anyway. 

How can I approach this- I got some real headaches during his tenancy and would like to be the eventual buyer of the note rather than a note trader. I believe its worth more to me than to note wholesalers, etc. The sole heir could sell it in short order as its the sole asset though I see she's about to do quite well on the sale of her own house that is currently under contract. 

Apologies for mentioning the dramatic events in addition to the question about the note. That can cloud questions - its been a memorable week.