Unless there is significant equity in the property 50% LTV may not be enough to payoff the current underlying mortgage.Now here are the exceptions to lift the COB 50% limited LTV restriction:- you inherit the property and it was transferred into your name either via legal award from a domestic partnership/marriage - you have been on title for 24 + months- you took title to the property that was transferred from a partnership or partnership like entity (LLC, LP, etc) that you can document the ownership of 25% or more in- you lived in the property and have been on title for atleast 12 months as a primary residence- you have paid the mortgage for atleast 12 months - or you can demonstrate a relationship with the obligator (domestic partner, relative, family member, etc. )If you qualify for one of the exceptions you are not limited to the 50% max LTV  when considering fannie/freddie conventional cash out refinances on a subject to transaction.

, business model viability, etc.Any input would be appreciated before I get in touch with them.Thanks for the feedback and have a great day.Yasir Lillingston

It is also far easier and more cost effective to scale by selling membership interest of an LLC or simply purchasing your real estate in LLC's where you raise money from friend's and family to serve as LP investors.   

Invest - not all of your 250K - as an LP and use the experience to learn about the asset class while making some $$$. 

I do like the rent to own model he speaks of in which the tenant assumes responsibility for the maintenance

Makes a huge difference especially in our economies of scale business model. 

Or is this a Fund of Fund model?

HUD won't approve something their model says can't work.

And, even if you could find an appraiser to do an evaluation, it's not clear how that would help you.As you state, the motel has been shut down for nearly three years, so there's no current financial data.But even if you had recent numbers, you're planning to operate it as a sober living facility, which I suspect is a very different business model.You need to find a comparable facility in or near your local market and develop your own customized financial analysis model based upon this particular property.Then, given your business objectives (cash flow and cash-on-cash return, I assume), you'll need to back into what purchase terms you'll need to achieve those objectives.Only then will you be able to determine whether these seller financing terms will work.As far as documentation to get started, a letter of intent (LOI) is commonly used but you might move straight to a purchase and sale agreement, particularly if no agent is involved.Whichever path you choose, just be certain to give yourself plenty of time to thoroughly perform your due-diligence.

I'm happy to be an LP if I can have visibility access to the process with a mentor to actually LEARN what is happening, but being an LP is NOT my goal.