That's a great way to put it.Hi Guys,Yes, that will be the move, I already know and have sketch of 2 ways to do it, I didn't want to get into a crazy rehab now, till I make sure my contractor is a team player and he will be able to do so, my idea is to add SF and create a master sweet, let's see if the numbers work fist, this is something I will do after the property is stabilized, I think I can get my capital back and some more with the 3/1 layout now, I will keep you posted!

It is best to collect the monies needed to protect yourself and your investment.

I strongly suggest you have an attorney draw up the contracts (and one has who has already done this many times, as they will already have templates they use).At the minimum, a lender need a Mortgage but I would also recommend for more protection, a lender will want a JV agreement, promissory, personal guarantee and if possible, to have the deal cross-collateralized with another property. 

It's called something else that I can't recall at the moment, but they'll know and be able to guide you in the right direction.Since there is a large amount of equity in the rental home, just be sure that your new HOI policy has good coverage and possibly think about an Umbrella Policy or additional insurance coverage to "protect you" vs. trying to reinvent the wheel and forming an LLC just for the one property.SD

In either instance, I would certainly have an attorney make sure everything is buttoned up and legal to protect you both.  

More things happened than what was listed above, but I think my mind has blocked them out to protect my sanity.  

It sounds as though your REALTOR didn't do their job to protect you and the Seller is trying to scam you.The first thing I would do is talk to your REALTOR.

I have been looking into setting up a holding company in Wyoming for asset protection and moving all businesses and future rentals into this holding company.

So I just saw this post about Section 8 HUD tenants, and this post stated something along the lines of section 8 tenants being more likely to damage properties because they're section 8 low income tenants, and also something about investors not wanting to put money needed into Section 8 properties because they think they're just going to be ruined by these Section 8 tenants, and as someone who knows the entire process with investors, owners, contractors, tenants, and prospective tenants, this is what I have to say about it:In my experience, Section 8 HUD tenants are actually better custodians of the property because of many factors, but 3 of the main reasons being, there is an annual HUD inspection that is performed on each property, so this gives the owner an extra 'protection vector' against damages, also, the initial placement of a Section 8 HUD tenant requires a passing HUD inspection, therefore there's a record of the property's initial state prior to move in, and additionally, they want to have an easy renewal voucher process annually, and their unit remaining in good condition is an incentive for those reasons, therefore they are LESS likely to damage a property - their future depends on it!

@David Krulac I know this post is 6 mos old, but with everything you state above, how is it that you bid on these courthouse deals and protect yourself?