If so, I'd look into that before a DSCR loan to avoid the prepayment penalty DSCRs carry.

Prohibited transactions can result in penalties and disqualification of the Solo 401(k).2.

When they see you post and not pay taxes, they'll come after you...and probably hit you with all kinds of cease and desist as well as back tax bills and penalties and interest and that won't be a fun place to be. 

I also recommend explaining what the penalty will be if she's not out as scheduled.

I’m ok with prepayment penalties before 3 or 5 years.

When vetting a hard money lender, ask about their interest rates, loan terms, and fees (origination, prepayment penalties, etc.).

I didn't read the website you were referring to earlier, but I know that there are attorneys who specialize only in dog bite cases - because there are laws on the books that give specific penalties that are non-negotiable, related to dog bites.  

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

Two things not covered so far:1) If a buyer challenges a seller-financed transaction, the Dodd-Frank penalty is that the lender must make the buyer whole.

And the ONLY way to know the actual laws and rules of bidding at foreclosure sales.For Pre foreclosures  Eric is correct many states have enacted laws that must be followed to avoid large penalties when dealing with Owners Occupied homes that are in foreclosure.