Hi Fulton,Did you suggest the CPA's to help with Sub To deals, or in general with accounting and tax services?

-is it a Property Tax foreclosure?

Tax: If you have a single member LLC, you will still be filing it as part of your 1040.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000  Lot 2: $307,000  Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value-  $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation-  $2,538 - Real Estate Transfer Taxes-  $1,500 - Settlement Costs Paid at Closing______________________________________________   $234,212-  $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcI've spoken to a few HM Lenders and ran rough numbers by them. 

The possibility of each tenant having their own bathroom and the potential for increased rent revenue was particularly appealing.Upon visiting the property for a tour, I was supprised to see the house not only featured the advertised 4 bedrooms and baths but also included an additional full bedroom and bathroom, absent from the online photos.

Of course, it depends on her needs, but it could be beneficial for her tax / income purposes if she discussed it with her financial planner (I'm not a CPA).The possibilities are pretty much endless with seller financing, to make it exactly how you both want.

But since i am not 59.5 years yet if I withdraw looks like 20% federal withholding charge and about 10% I have to pay in taxes which means i loose around 30% of my 401k amount which I  accrued over many years

Seller loses, buyer loses, tenant gets evicted in long run, property sits with deferred maintenance during the process and neighbors don't like it, bad guys can break in...Foreclosure for an individual can cost anywhere from $90000- $250000.00 depends how long, what state, all the problems, delays... attorney fees hourly, filing fees, property taxes have to be paid...

Of course, there are always exceptions (they use their tax return $$ for the move, another park offers to pay for the move, etc)

Since he's 62 I know we can withdraw with no penalty, but is there a way to avoid taxes ?