This was done to protect senior citizens on fixed incomes from being forced to sell their homes due to unaffordable property tax increases.Since the passing of this amendment, all properties in Michigan have two property tax values associated with them:State Equalized Value (SEV): supposedly equal to 50% of the market value of a property, not based on recent sales price.Taxable Value: the SEV annually capped as long as there is not a transfer of ownership.City Assessors are charged with determining how much property values have changed each year.

Basically, the higher the ROI you want, the more riskier properties you'll be forced to target.

But if the docs give you the right to start charging default interest, force release of the lien etc that is at least some leverage, control. 

It does seem competitively priced for the area.If anyone has insights into how the existing HELOC might impact the mortgage assumption or tips for negotiating on a deal like this, I’d greatly appreciate it.

That forces them to figure it out.

The issue is this negative initial cash flow increases the amount invested which will impact ROI forever.I do not do flips, but if I purchased this property I would be flipping it rather than suffering that level of monthly negative cash flow on that cheap a property.Regardless if you rent or sell, add a closet to each bedroom.  

Here are some steps you could consider:Clarify Expectations in Writing: Send her a formal letter (via email and a physical copy if needed) explaining the importance of scheduling timely repairs and how delays have impacted the property and repair costs.

Further, the reason for sale sub to may be because of some property deficiency that does not allow the property to qualify for new financing, or the property may not be worth the amount owed forcing the seller to “compensate” a higher than market price with either “easy or no qualifying” or a low interest rate.

Without it, there's no guaranteed legal status, which could lead to being forced to leave the U.S. and potentially manage property from abroad—a complex and often costly endeavor.Real Estate Ownership and Rentals as a Non-Resident: If you do decide to purchase property and then move abroad, you can keep it as an investment, but it requires navigating tax regulations specific to non-resident foreign property owners.

The lender can using the acceleration clause of the mortgage make it 100% due and payable but that would just force you to refinance it into a different kind of loan.