It can be a drawn-out process, but it might get you closer to that $500k value.

The "due on sale" clause (DoSC) obligates the seller to notify the lender if the property is sold.Failing to do so would place the seller in violation of this agreement, giving the lender the right to accelerate the loan.But no laws are being broken here.So, subto is neither legal nor illegal.Second, it only works because most lenders are more interested in receiving payments than in invoking the DoSC clause and foreclosing on the property.But, it can work, provided seller and buyer are both on board and the proper process is followed.

Many I have seen have more of a Reward over Risk thought process, get $ quick mindset basically but don't realize the risk, time constantly following up and sleepless nights wondering and waiting all for a small fee. 

Hi Treza,Not sure where you are in the process there, but when your ready to exercise financing options please reach out, it's very difficult to find a ground up program for inexperienced borrowers without having an experienced GC sign on the loan with you which in turn is not easy to find. 

I imagine the whole process is simpler but can anyone tell me how different it is when you don't borrow the rehab costs?

Thank you@Brian Lubeck I believe you need to call the local DMV for where your trailers are located and go through the process for a replacement title.

The numbers may be 30-40% lower than today's cost, but the process/approach to estimating may be good for you to review.

You also need to account for the eviction process, state laws etc...

Possibly already permitted outbuildings that already have plumbing such as workshops, offices, etc might be able to be converted to an ADU at a cost that does not result in the cost being more than the value added.Building an ADU is a lot of work and can be a slow process.  

Would love to hear your process!