That's why I though that having such a short balloon for the buyers to pay off could be a dangerous situation for them...now I realize that is mostly for me, as they would just walk away and leave the time-bomb in my hands.Yes, and I'm relying in that the upside down "status" of the house by aprox 3K wont be an issue when they get ready to cash out.Regarding the Subject-To and Wraparound mortgage...Isn't what I wanted to do similar to what you proposed in your original post?

Hard Money Lending and Apartment Ownership can both certainly do it.My concern is the combination that you are relatively new in REI, you are seeking high (and thus higher than average risk) returns and most dangerously, you seem to want it to be "automatic".

Will recapitalizing the project with new financing buy anything of substance with a new cash investment from the LPs?

Perhaps it would be more honest to come to this realization and instead enjoy an extended weekend in Vegas burning the money on loose women, high stakes poker and your mind altering substance of choice.

I know just enough to be dangerous on LO so bare with me.

These are the kinds of discussions that I find very dangerous on this board.

In addition to the obvious contribution limitations, the dangers of self-dealing, and the liability risks noted above, a self-directed retirement plan also eliminates the ability to take advantage of significant real estate benefits as depreciation and many business deductions.

I would view the DC area as potentially very dangerous to invest.

Yes I would be conscious of potential dangers of committing to purchase but I'm not looking to do rent to own just tie this up for later if it doesn't work out I'll walk away but I think I can get a good price on this with a lease purchase and not forgo using FHA or VA in the future.

Buying property without checking title is far more dangerous than buying without seeing the physical property.