Before pulling the trigger to incur all those taxes and penalties, keep it, invest it wisely, and find other sources of capital to fund your non retirement account income stream.

There is a great deal of information and when you have done enough research that you are happy with your investment, pull the trigger. 

Namely, the person who is being foreclosed on gave up ownership of the house several years ago via quitclaim to another person that does not appear to be a family member.I'm assuming this triggered the due on sale clause for the bank, even though that took years to actually occur.

I really want to do this right and I'm not sure of all the things I should look into before deciding to pull the trigger.

I really want to do this right and I'm not sure of all the things I should look into before deciding to pull the trigger.

That can happen in a hot market, or it can happen in a crashed market, and any and all points in between, and a true investor will be willing and able to pull the trigger on such a deal at any time and any market condition.

Off Market deals are found from hard work but I don't advise you start that route if you are not prepared to pull the trigger quick.  

I sounded like I knew so much and was right around the corner from pulling the trigger in every post!

I base my trigger pulling on cash flow strictly.  

In general contributions into an entity do not trigger a taxable event.Doing it prior to sale leaves you open to issues of intent and holding period and the thought that you're somehow hiding gain somewhere in the entity transfer.