FYI - not legal advice.If it's not a formal assumption and it's a straight sub-to, typically the seller remain personally liable for the debt if the investor defaults.Essentially, what can the investor do better than the seller after refinancing the property? 

“What if the seller backs out?”

During our tour, the property appeared to be in good condition, and we were comfortable negotiating the seller's lack of repairs, provided the cost did not exceed $2,000.

These are ideal opportunities to offer seller financing. 

Look for off-market deals, seller financing opportunities, or even house hacking a small multi-family with an FHA loan (3.5% down) if you plan to live in one unit.For creative financing, explore seller financing, subject-to deals, and lease options.

I would never advise my customer to take a 5 YPPP considering we are have been moving into a downward trending rate market since 2024. 3 Year Prepay Max but if you plan on doing renovations or taking cash out on the ARV then a 1-2 YPPP would be Max.I would also advise buying the rate down before you decide to take a 5 YPPP using seller credit, equity or closing funds.

All the tenants are recruited by the previous seller, so I don't know their credits and don't know their personalities.

Great way to build a business and a rolodex of listings/sellers.

Most of the metro area is in a strong sellers market.https://mocoshow.com/2025/02/17/dc-metro-area-real-estate-listings-flooding-the-market-not-accurate-according-to-gcaar-president-elect-russell-brazil/

What I will say no matter what you are buying, do your due diligence on the seller, your teacher, the asset and everything involved in this space.