Buy: $284,900Rehab: $115,000Holding: $16,500 Points: $3,413 Selling fee: $30,000Insurance hold: $2,000-$2,500 (maybe get back $1,000-$1500 if you close quick)Other title/escrow purchase: $2,500ARV: $500,000Profit: $46,587 (9.25% approx) I would do the deal, especially if you get that gap for rehab closed 3-4 months and tighten up the rehab costs too ($100,000)   

if i were to acquire these and have them be owner financed, I would want clear title and the other mortgage on this lot removed - especially if my loan has a balloon on it that matures prior to the existing loan, as how would to provide clear title?

Thanks for the valuable info, @Rich Ng (can't seem to tag on mobile right now).

Title cleared and we were closed in 8 days.

However, your mother-in-law is a related party to your wife.Given this, it's important to understand how the title is held on your rental condo?

In addition, a DIL does not automatically satisfy the underlying mortgage/DOT so if you accept a deed from the DIL grantee you may find a title insurer will require a release or sat of it before insuring.We have often used a “friendly” foreclosure instead of deed in lieu when we needed to “wipe out” liens junior to ours before taking property title.   

In this instance, all properties involved in the exchange must qualify as an investment (ex. rental) or business-use property.2)  If the property is currently titled in the name of the trust, the trust would technically be the taxpayer/exchanger completing the exchange. 

Additionally, some states hold Escrow and Title services differently. 

If you need an LLC for tax reasons later, you can move title into an LLC later for a couple hundred bucks.

Did your borrowers mention securing your investment with a recorded mortgage or deed of trust, personal guarantees, lender’s title insurance, or anything else?