All of this can be summarized as, "this strategy will improve your cash flow and give "some" appreciation but not the same appreciation as officially converting the home to a duplex". 3.

Good luckWhat is seller really risking when they are headed to a foreclosure or have health problems and no way to keep up payments, they don't have equity so they can't sell because they are upside down.

She will lose it.They are offering to pay off her $87,000 debt, they will remove the squatter, they will pour money into the property to ensure it sells for the highest value, and then they will give her an additional $240,000.She is getting $327,000 for a property that she is about ready to lose and it's probably affecting her mental stability and physical health.

This is especially true if the property requires significant upkeep or if the heirs live far away.Owners of Distressed PropertiesSellers who own homes in poor condition and can't afford the necessary repairs may prefer to sell as-is rather than invest time and money into renovations.Landlords with Problematic TenantsLandlords who have been dealing with problematic tenants, frequent vacancies, or costly property damage might want to offload the property quickly to cut their losses and avoid further hassles.Owners Facing Major Life ChangesSignificant life changes, such as health issues, retirement, or downsizing, can motivate people to sell their property quickly.

Even had a rat problem in the past whereas I notified the Board of Health.

(We don't want government officials coming after us and it being on our burden to prove why we're exempt.) 

Being on title protects the seller from the buyer defaulting - it seems this is an alternative to "officially" putting them in a 2nd position)-- Title company sends seller the $350K they require-- Title company sends buyer back $650K (which they can use to pay off their transactional lender if they used one)So now the seller is happy bc they got the $350K they needed, the buyer is happy bc they acquired a property for zero dollars out-of-pocket, and from what I understand the 1st position lender is happy bc due the LLC arrangement the seller finance component is not technically considered a second lien on the property.

I offered to have all the suspect insulation removed and proceeded to do so but the buyer backed out anyway, spooked by the word "asbestos" which isn't even a health threat unless it's disturbed and it was in the crawl space, not a livable area of the home.Next contract, the inspector brought the code book and proceeded to list numerous nit-picky issues that were totally different (apparently missed?)

I have even heard interviews of officials (I think from the Office of Thrift Supervision) where they say they also have never heard of it being enforced.

Right, once you have it recorded, you've now officially "clouded" the title and no one can go around you.