;<)Every case is different-but what it comes down to is always be diligent about whom you say 'yes' to. 

The property is worth 270k + and 3 bathrooms are in the process of being remodeled(the owner may only finish one).Subject To is a more sophisticated transaction and needs special paperwork and planning to keep you out of trouble.

As a college student I don’t have a lot of money to invest into real estate but I would like to. Is

Maybe you were not thinking long term  but it is something you might consider even if initally you were not considering to. I

As much as we'd like to, I don't think anybody here can actually help you without seeing the title report and perhaps the BK docket.

They can sue if they want to. I

Even when everyone said not to I still did!

The reason I did not make a recommendation one way or the other is because it is not a legal question and I don't know the dynamics of the relationship between him and the person who he is lending to. I

Most investor friendly agents have a bunch of people they can refer you to. I

As @Wayne Brooks it would be ordinary income so that would still be a significant savings.The other option as @Matt K. alluded to is a cash out refi.