That’s 30 years.Talking concepts is very important.Talking with emotion and not logic is very important.There’s a danger in educating the seller too much and teaching techniques on how to solve the problem is never a good idea.I never do that.I don’t educate sellers.

Your question is if the sellers subordinates to the HML so you can get rehab funds and said lender wants to be in first ( demands) and your seller is in second ( subordinated) if it goes TU what happens to the Seller's subordinated interest.I think that is what your trying to say.Well the seller ( who has a subordinated interest) is in second position if the first forecloses the second ( seller ) needs to cure.. either pay it off or pay the payments. this would mean you defaulted as the buyer .. they keep first current and foreclose on second they end up owning the property subject to the first.. and you are out in the cold.Very dangerous position for a seller. one I would never personally do or recommend unless seller is very cashed up and can easily take project from you and pay HML off in cash.the most dangerous lending position is subordinated loan to FTD construction loan does not get much riskier and if they go to an attorney for advice I highly doubt they will do the deal.

Leverage is a powerful tool in real estate, but it can be dangerous.

I submit that @Steve Vaughan is absolutely correct this is a very very dangerous play for the average person who has not demonstrated any ability to save money.. you just bury yourself in debt and if your deals don't go well... ( See many storied of first timers losing money) now your really Fubared ... you lost money and you have a mountain of CC debt which will absolutely hammer your once pristine FICO.Now if you have an AMEX black card with no limit or Very high limit say 200 to 500k well then go for it.

Skilled operators know the basics, they can turn to any strategy to profit as they recognize opportunity or dangers. 

I know small town rural facilities can be dangerous but like I said, this unit and all competitors are all full... not to mention if I raised rents to be closer to competition but still left them cheaper, that would increase the cap rate even more (14%+)!

Condo regime is a great alternative.If you do a balloon, have your numbers tight because that's a dangerous way to finance if you aren't careful.

It is dangerous if the crack is across the element. 

I am going through a similar situation where the tenant wants to withhold a portion of the rent, but that is a dangerous precedence to allow to happen.

As military members, our strategies will be different than your typical BP member but that also means we have some distinct and unique advantages.