Getting approval from the lien holders is tough enough, but if it's a regular bank they may not make it feasible to assign the contract.

I would simply approach the note holder and ask them if they like the monthly cash flow that's coming in and if they said yes, I'd offer them a lein on a different piece of property.

The $34k in installment loans would remain under me as I'm the mortgage holder of this house at a avg rate of 9%.

What is going to happen to the house’s condition while vacant (or will family rent out the house while life estate holder lives) and will the life estate holder be required to pay taxes?

Also-would you all reach out to the account holder themself (the child) in this instance or just let it be?

@Carlin A Guarneri If your property is advertised, Section 8 voucher holders will reach out to you.

Also, is AL the only state that allows a property to be rented out by the tax lien holder? 

A new or larger underlying loan increases the chance of being unable to fulfill this obligation.As the holder of legal title, you are theoretically able to pledge the asset to obtain financing.

: "The trustor grants to the beneficiary (me - note holder) an irrevocable option to purchase the property, including all contents except for personal property (chattel), for the sum of ONE DOLLAR ($1.00) upon being offered for sale or upon the death of trustor (borrower's/buyer's name)"2.

otherwise let me be the first to say, RUN. do not buy this. ok with that out of the way, a few things you can adjust to give you a more realistic picture in the calculator. no matter what you'll always be spending some money on repairs when you first get into a place, so off the bat i would put a grand or two for estimated repairs. i run my vacancy numbers at 8% as this is just about a month. your capex should be lower, unless this place has some really big ticket items waiting to die. same with repairs. also the insurance numbers and property tax number both seem very high, is this the real numbers or just place holders?