Not at all unusual to have title in the name of an entity, but the note held by an individual(s).

Even if you can convert  the office building tenants to an unusual NN or NNN scenario for that product and 1 year leases they might not can sustain the rents.You have to take inventory of each tenant currently in the building for office.

Darin, congratulations on taking action and acquiring this property, especially if it was your first.Even better that you were able to put 20% down - that should provide a good cushion in case the market turns, rents fall, etc.I really like your unusual angle on the abandoned road and the property line.

A few red flags to watch out for would be:- Asking for a large loan application fee or other fees upfront  - Unusually low interest rates for a hard money/private lender (real hard money/private lenders aren’t loaning money at 4-5% but fake ones usually advertise those rates)- Email communications with really bad English/grammar indicating the sender might be from out of the country- Claiming they loan nationwide in all 50 states (most non-bank, hard money/private lenders operate in only certain states and don’t lend nationwide)- Claiming they can do loans from $5,000 to $50 million (most lenders that will loan you $5,000 can’t do a loan for $50 million, and most lenders that can do a loan for $50 million aren’t going to bother doing a loan for $5,000)- Offering to send you a photo of their drivers license (fake lenders tend do this to convince you they’re legit but I guarantee you it’s not their license they’re showing you and a real lender would never do this)- Not caring about your qualifications or the merits of the deal (basically willing to “approve” you no matter what you bring to them since they know they’ll never actually fund it)- Terms that seem just way too good to be trueThat’s just a few things to watch out for.

That's highly unusual.  

It's an unusual application of a 30-yr mortgage, for sure.To your other question:"Has anyone actually purchased with HELOC funds and obtained a mortgage soon after, using the delayed financing exception?

I'd still get title insurance though...I'd wonder why they are selling it for less than they paid and still below market rate.Maybe the 2019 sell was a foreclosure and the neighborhood changed and now it is not worth as much.Maybe the house was in a fire or mold infested, or a meth lab--something that has major rehab costs, so it is worth less than the neighboring properties.Maybe the sell is just a scam.I'd wonder though if there is some sort of issue with the occupant--lifetime estate--big bad boys with guns and not afraid of using them--the local Sherriff's kid--one that will burn the place before they move--unusual deaths in the house--something.There is a reason for the low price. 

The way you describe it makes it seem like it doesn't.And it's unusual for a tenant to cover ALL utilities in a residential scenario so double check on that.As far as not needing cap ex I've found it's much better to have it and not need it rather than the reverse. 

The problem I see is that in this unusual and hard time there will not be too many people looking to rent a house for $2400 a month and I won’t be able to find someone for 3-6 months which I will not be able to withstand a vacancy this long. 

This is not uncommon or unusual for an experienced title company so make sure you go through title.