Many years ago, there was someone that had a technique of doing this which didn't violate the due-on-sale.

To further complicate the process, this demand notice must now be attempted to be personally delivered to the tenant two separate times, on two separate days, before it can be legally posted upon the property.

There are more hoops you have to jump through with inspections, building techniques and building materials.

Sometimes, it could be 3 if it's complicated, but commission is always negotiable on- or off-market, but that doesn't mean an agent wants to take less to do a great job. 2 percent for off-market if they are going to do the whole process with you is far and up to 3 percent for a great agent makes sense.

Then double that to get rough labor, That's $80k for framing......Note - I built in a little ritzy town in SoCal much fancier and costly than your area, but the costs should be pretty close....Hope this helps.I just paid my lumber pack for a home in Lake Oswego Or i am building  3k sq ft includes truss's  75k  framing was 8 bucks a foot ( complicated house with strong walls ( metal ) so 24k for framing nails and window sets.. 

And that's not to pass judgment on you or others who employ leveraged techniques to investing in real estate.

Insurance claims are never fun and with being in an HOA certainly makes it a bit more complicated.  

Bottom line buying notes is complicated and a lot of work to be successful..

However, especially for your first, I would suggest the money you pay for either option is a better value than doing it yourself.Pursuing an investment with a partner does complicate hings slightly and I'd recommend discussing the legalese with an attorney.How do you stop a tenant from wrecking your property? 

@Karen KushnerIn your two messages, you're basically asking to learn several highly complicated topics and then figure out how they apply to your specific situation.